Portuguese deficit falls 1,901 million euros until August

The budgetary deficit between January and August decreased 1,901 million euros, when compared to the same eight months of 2016. The result was disclosed this Monday by the Portuguese Finance Ministry.

According to the Government, the deficit stood at 2,034 million euros by August, a lower amount than the one registered until July (3,763 million euros). The 4.3% increase in revenue and a 0.4% growth in expense were the main contributors to this result. The Finance ministry also disclosed the primary balance inflated 2,087 million euros, now standing at over 3.7 billion.

"This improvement trend gives us confidence in our budgetary goals set for 2017 and it will allow us to accommodate the impact of certain variables which will translate into a decrease in the rhythm of deficit reduction for the fourth quarter.”

On the evolution of revenue, the Executive highlights the tax collection of the State is growing by 6%, twice as much as the rhythm expected for this year’s State Budget. As for expense, the Government assures they are “strongly betting on Public Investment and in the Portuguese Health System”. And the Finance minister emphasized that “the expense from the National Health Service grew 4.8%, higher than the past two years’ expense growth rates”.

However, this improvement rate in the Portuguese public accounts will not be continued, the Ministry headed by Mário Centeno clarifies. “This improvement trend gives us confidence in our budgetary goals set for 2017 and it will allow us to accommodate the impact of certain variables which will translate into a decrease in the rhythm of deficit reduction for the fourth quarter”, was stated in the official note sent by the Finance Ministry.