Deficit at €8.69B until November as pandemic bites

Portugal’s public accounts deficit worsened by €9.27 billion up to November, totalling €8,69 billion, due to the Covid-19 pandemic, the Finance Ministry announced on Tuesday.

“Up until November, budget execution in general government accounts showed a deficit of €8,69 billion, which represents an increase of €9,27 billion over the same period, which is justified by the impacts of the Covid-19 pandemic,” the finance ministry said in the communiqué that preceded the release of the Summary of Budget Execution by the Directorate General for the Budget (DGO).

The finance ministry explained that the deterioration in the balance, as a result of the pandemic, resulted from a 6.3% reduction in revenue and a 5.3% increase in expenditure, “both due to the adverse impacts on the economy reflected in the sharp reduction of tax and contributory revenue and the increase in expenditure associated to extraordinary measures aimed at supporting families and companies.