The Government ends 2017 with a cut in the deficit three times larger than in 2016

  • ECO News
  • 25 January 2018

The Portuguese PM, António Costa, had already announced the budgetary deficit of 2017 would be better than the goal set by the Government. The Finance ministry reaffirms the compliance with the goals.

The Government ended 2017 with a deficit in public accounts of 2,574 million euros, which represents a 1,607 million euros’ cut in comparison to the previous year — three times more than last year. These data were anticipated this Thursday by the Finance ministry.

According to the Government, the deficit reduction is explained “by the 3.8% income growth, above expenses’ growth of 1.6%”. Income grew above the State Budget’s forecast (which was a 1.4% increase), but an official source from the Finance ministry acknowledges that expense was also worse than expected (the increase should have been of around 0.5%).

Therefore, results assured a 1,677 million euros’ gain for the primary balance, to 5,725 million euros.

These data concern a cash based evaluation and not according national accounting, the one that matters for evaluating the compliance with the budgetary goals undertaken before the Parliament and the European Commission.

"For the second year in a row, the Government assures the compliance with the fiscal goals set in the State Budget.”

Finance Ministry

Therefore, numbers make it possible to state that goals will be met. “For the second year in a row, the Government assures the compliance with the fiscal goals set in the State Budget”, is stated in a press release sent to newsrooms from the Finance Ministry.

PUB