Public investment, 1935–1950

The balance of public accounts achieved by Oliveira Salazar was of great importance and proved crucial to the survival of the regime, contributing to the restoration of government authority and effective state control over the country. The higher interest rates and the confidence imparted in the institution through direct state association made the Caixa one of the most important banks in the country. For this reason, it became an element in decision making on public investment and economic support for the governments succeeding Salazar. In 1935, the Economic Reconstitution Law was enacted. This was a public investment plan for the period from 1935 to 1950. It identified priority areas for investment: roads, ports, the telegraph and telephone network, the national grid, agricultural hydraulics linked to irrigation and settlement, schools and state department buildings, repair of national monuments, urbanisation of Lisbon and Porto, colonial credit, and, crucially, army and defence.