The panorama of financial protection for Portuguese families is preparing to face a genuine administrative revolution in the coming months. The alert sounds for thousands of needy households as at least 8 State supports, including Bolsa Família, could soon disappear, giving way to a new system.
The answer to this suppression of subsidies is to immediately merge them into a new single social benefit to simplify the system’s bureaucracy. Detailed information about this complex government process is provided by the newspaper.
The requirement agreed with the European Commission requires this legislative consolidation to be implemented definitively by the end of August. The same source indicates that the final document will inevitably have to integrate solidarity funds for which the beneficiaries did not make direct deductions.
Assessment of current subsidies
The design of this structural transformation was based on a rigorous study commissioned by the executive from the international organization for economic cooperation and development (OECD). This foreign entity x-rayed the national machine and detected the existence of 27 non-contributory transfers under the supervision of the Ministry of Labor.
The wide range of state aid encompasses crucial mechanisms such as the solidarity supplement for the elderly and the traditional family allowance. The global cost of all these social payments surpassed the three billion euro barrier over the past year.
The race against the calendar
The process of creating the law now faces an enormous time crunch that threatens the financing of multiple investments designed for the recovery of the economy. The aforementioned source explains that any delay in the entry into force of this regime will throw five hundred million euros directly into the trash.
Those responsible for the mission structure that manages European funds reveal deep concern about the slowness of the parliamentary and administrative apparatus. The time available is increasingly reduced and the urgency of the operation reaches critical levels for maintaining these external funds.
The challenge of public information technology
The impact of the measure goes beyond the mere approval of decrees and requires a true technological revolution in the structures that process monthly aid. The creation of a new aggregated payment requires the timely modernization of databases to avoid blocks in the arrival of money to users.
The responsible ministry seeks to rule out the most pessimistic scenarios and ensures that the architecture of the new servers follows the evolution of all operational needs. State supervision ensures that there are no reasons for panic and promises to present the new legal initiative in the very short term.
The heavy consequences of failure
The eventual failure of this schedule dictated by Brussels will cause the automatic cancellation of the monetary slice promised by the continent’s financial entities. The money allocated to this gigantic operation cannot be transferred to parallel projects or redirected to internal budget safeguard funds.
The definitive closure of the tap of community funds would force national accounts to look for equity capital in other areas of the fiscal machine to fill the hole created. Expresso also explains that the possible recovery of this foreign capital after the formal deadline is completely impossible and illegal.
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