Public deficit up €341M to €1.65B until April
The Ministry of Finance releases this Tuesday the data of budget execution until April in public accounting. These figures already partially reflect the economic impact of the pandemic.
The general government recorded a deficit of 1.65 billion euros up to April this year, an increase of 341 million euros compared to the same period of 2019, according to a communiqué the Ministry of Finance released on Tuesday.
This was due to slower growth of revenue (5.0%) on the expenditure (6.1%) the communiqué sent by the office of the ministry led by Mário Centeno said.
According to the finance ministry, “figures until April show the effects of the pandemic on the economy and public services following the mitigation measures,” which contributed to a deterioration in the balance of “at least 660 million euros.”
In revenue, the State is recording a drop due to the extension of the deadlines for the submission of deductions at the source of personal income tax, VAT and corporate income tax, and the impact of the postponement of social security contributions and the suspension of tax executions has not yet been quantified.
In expenditure, the greatest increase is recorded in the simplified lay-off scheme, which cost 144 million euros in April, the acquisition of health equipment to the value of 128 million euros and an additional 54 million euros in other support supported by Social Security.
