Portugal court rejects some austerity measures, upholds most

LISBON, April 5 Fri Apr 5, 2013 4:18pm EDT

LISBON, April 5 (Reuters) - Portugal's constitutional court on Friday rejected four out of nine contested austerity measures from this year's budget in a ruling that deals a blow to government finances, but is unlikely to derail the bailed-out country's adjustment effort.

The measures rejected by the court should deprive the state of some 900 million euros ($1.17 billion) in revenues and savings, according to preliminary estimates based on budget calculations.

The whole package of new austerity measures introduced by the 2013 budget is worth about 5 billion euros.

The 13 constitutional court judges scrutinized articles of the 2013 budget, which imposed the largest tax increase in living memory and imposed pay cuts for civil servants and pensioners, rejecting some of them.

The government has called an extraordinary cabinet meeting on Saturday.

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