In 2001, abstracting from UMTS proceeds, the projected improvement in the government balance amounts to 0.8 per cent of GDP, implying an adequate tightening of the budgetary stance. However, achieving the target calls for a reinforcement of budgetary procedures, in particular as far as the control of current expenditure is concerned. Notwithstanding increased efforts in this regar
d by the Portuguese authorities in the framework of the envisaged Public Finance Consolidation Programme, attaining the planned cut in current primary expenditure of ½ p.p. of GDP in 2001 might prove challenging given the agreed rise in contractual wages in the
...[+++]government sector of 3.7 % (which could lead to an increase in effective wages of around 5½ %.)