Thursday, March 26, 2015

2014 public deficit is 4.5% – publico

                 


                         
                     


                         

                 

 
                         

The public deficit recorded in 2014 was 4.5%, a value which is below the target of 4.8% set out by Government in September last year, announced on Thursday the National Statistics Institute (INE) .

                     


                         According to the report on the Excessive Deficit Procedure which will now be delivered to the European authorities, the negative balance of public accounts last year amounted to 7.8223 billion euros. In September last year, the Government had forecast a deficit as it was 513.5 million euros higher.

This 4.5% deficit recorded now includes extraordinary measures such as the registration of State financing operations to STCP and Carris, bad debt annulment of BPN Crédito, held by Parvalorem, and the assumption of the guaranteed debt of the Mutual Counter Fund.

If you remove these operations analysis, the public deficit drops to a value close to 3.7%, ie below 4% that had been promised by the Government to the troika. In the negotiations of the evaluations Portuguese program had been established that these extraordinary operations would not be considered to measure compliance with the deficit targets by Portugal.

The value of the public deficit in 2014 does not include any impact of capitalization New Bank, since the national and European statistical authorities decided that the registration of that operation stay suspended until the data of a possible sale of the bank to a private entity are available.

Luis Marques Guedes, Minister Presidency, said on Thursday that the INE data confirm that the “Government meets for over the 2014 goals.” “Terms achieved in 2014, staying with a three tenths deficit below what was budgeted (and the effect carry over to 2015) is confirmation that the targets for 2015 will certainly be achieved in terms of fiscal consolidation, to which has contributed to economic growth, “he said in the usual press conference after the meeting of the council of ministers. The Government continues to predict a deficit of 2.7% in 2015.

Marques Guedes stressed that “the country will come out first the excessive deficit procedure” and recalled the recent estimates of the Bank of Portugal and international organizations that have revised upwards the performance of the Portuguese economy. “We must continue on this path, be ambitious in the goals to overcome significantly improve economic growth and thereby the quality of life of the Portuguese,” he argued.

debt above 130%
But if the deficit the result was better than planned in September by the Government, with regard to debt performance was worse. The Portuguese government debt rose above the threshold of 130% of GDP in 2014, being 2.4 percentage points above what had been projected by the government.

There are over 2131 million euros of debt than expected and a next climb of 5500 million euros compared to 2013. As a percentage of GDP, the debt had stayed at 129.7% (a value subject to upward revision). The government had staked in 2014 as one in which the debt ratio began to fall, the more target was missed, and now postponed to 2015, the year that the target set by the Executive is 125.4% of GDP.

The debt ratio in 2014 was still affected by the fact that the value of nominal GDP was below what was envisaged by the government.

With Ana Rute Silva

                     
 
                     
                 

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