Deficit improves 2,326 million euros until November

  • ECO News
  • 27 December 2017

The budgetary execution until November shows the deficit improved 2,326 million euros. Delayed payments continue to increase, but the Finance Minister promised a "significant decrease" in December.

The prime minister had assured that the 2017 deficit would stand below 1.3%, below the 1.4% set in the last downward revision. A few days later, INE disclosed the deficit according to the definition that matters to Brussels stood at 0.3% until September. This Wednesday, the Directorate-General for Budget (DGO) publicized the number for the budgetary execution until November. In anticipation, the Finance Ministry reveals that, in public accounts, the deficit improved 2,326 million euros until November, in comparison to the same period of last year.

“The Public Administrations’ deficit until November ascended to 2,084 million euros, which is an improvement of 2,326 million euros in comparison to 2016”, stated the Finance ministry. The ministry justifies this evolution with two effects: the 4.3% growth in income and the “reigned in” expense by 0.8%. “The primary surplus ascended to 5,800 million euros, a 2,281 million euros’ improvement”, further discloses Mário Centeno’s office, as had previously happened in October.

The Finance ministry argues that “the evolution of the deficit throughout the year assures, for the second year on a row, that fiscal goals are met”. Mário Centeno stands by his “rigorous budgetary execution”, but acknowledges that the decrease in the deficit is linked to the positive evolution of income, which will allow a reduction of public debt in GDP percentage, according to the Government.

However, there is an issue left to be solved: delayed payments. In comparison to the previous month, there was a worsening of 85 million euros in November. Mário Centeno assured there will be “a significant reduction [in delayed payments] in December, due to the financial reinforcement that was made in the beginning of the month”.