PROPOSED LAW No. 2/XI

Exhibition of Motives

The consequences of the international financial and economic crisis were more intense than

initially if it previres. Notwithstanding the acknowledged signs of recovery of activity

economic, resulting, in general, of the set of measures promoted and concerted by the

various States, and, in particular, of the measures taken by the Portuguese Government,

notably to ensure stability to the financial system and to support the economy and

households, the sharp fall in tax and contributory revenue was inevitable.

Tax revenue in 2009 strongly reflected the negative progress of the major variables

macro-economic, checking for a break now estimated at 13.2% relatively to the

value charged in the preceding year. In comparison to the value of the underlying tax revenue

to Law No. 10/2009 of March 10, a reduction of approximately 4.5 thousand million is expected to be

euro, in large part justified by the evolution of indirect taxes, in particular of the

VAT, resulting from the contraction of domestic demand and prices.

At the level of direct taxes, the relatively more unfavorable developments in the market of

work has been contributing in a negative way to the collection of IRS. For your shift to

decrease in IRC revenue stems from the deterioration of company results in 2008

that were reflected in a lower revenue in the autoliquidation, in a greater volume of

reimbursements and in the reduction of payments on account.

To combat the effects of the crisis the Portuguese Government has taken several measures to

promote economic growth and employment, support investment, strengthen soundness

of credit institutions and promote the liquidity conditions in financial markets,

and, to that extent, ensure the regularity of funding for households and businesses. Of these

measures, they highlight inter alia the reduction of the time limits for reimbursements (Decree-Law

n 211-A/2008, of November 3), the extraordinary concession of personal guarantees by the

State (Law No. 60-A/2008 of October 20), the regime of public capitalization (Law

n 63-A/2008, November 24) and the increase in the limit of protection of deposits with the

lifting of the guarantee threshold from EUR 25 thousand to EUR 100 thousand. In scope and in the

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Sequence of the European Council of December 2008, the Portuguese Government launched the

Initiative for Investment and Employment (Law No. 10/2009 of March 10), an

integrated program for promotion of investment and employment.

Despite the positive impact of the said measures approved by the Government and a

more favorable developments in financial markets, the already mentioned decrease in tax revenue

makes it necessary to make some adjustments in particular to the level of the redistribution of the

limits on expected indebtedness to cope with the needs arising from the implementation

of the State Budget and the reallocation of some items of the expenditure, without increasing the

maximum authorized limit.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

Article 1.

Amendment to Law No. 64-A/2008 of December 31

Articles 139 and 149 of Law No. 64-A/2008 of December 31, go on to have the following

wording:

" Article 139.

[...]

1-To cope with the financing needs arising from the implementation

of the State Budget, including the services and funds endowed with

administrative and financial autonomy, lies the authorized Government, in the

terms of the point h) of Article 161 of the Constitution and of Article 142 of the

present law, to increase direct global net borrowing, up to the

maximum amount of (euro) 15 to 011.7 million.

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2-The addition that results from the previous number in the face of the limit set in the Act

n ° 10/2009 of March 10, which amended the Act No 64-A/2008, of 31 of

December, is carried out by counterpart of a reduction, in the same

measure, to the maximum extent provided for in Article 149.

Article 149.

[...]

Exceptionally, to cope with the financing needs, having in

view the enhancement of financial stability and the provision of liquidity in the

financial markets, is the Government authorized, under the terms of the h) from the

Article 161 of the Constitution and Article 142, to increase indebtedness

direct global net up to the amount of € 15 to 096.2 million, which is to add to the

maximum amount referred to in Article 139 of this Law. "

Article 2.

Amendment to the maps of Law No 64-A/2008 of December 31

The amendments arising out of this Law are contained in maps I to IX annexed to this Law,

of which they are an integral part, and which replace the corresponding maps to which it relates

the Article 1 of the Law No 64-A/2008 of December 31.

Seen and approved in Council of Ministers of November 19, 2009

The Prime Minister

The Minister of State and Finance

The Minister of the Presidency

The Minister of Parliamentary Affairs