Government estimates 2.5% deficit, even with the economic slowdown – Express

Even if the economy grows half of what was expected – about 1.8% – in the State Budget (OE) for 2016, the Government says that the deficit would be by 2.5% of GDP, the account ” Business Journal “on Tuesday. The expected value, which coincides with the new deficit target for 2016 set by the European Union comes in the estimates of the Government in the report on the State Budget.

With an economic growth of 0.8% of GDP, below the first set value, the budget deficit would only increase of 2.2% initially forecast to 2.5% of GDP, according to the Finance ministry accounts.

materialize, this scenario would pose no problem against targets imposed by Brussels. In its latest forecast, the European Commission pointed to a deficit of 2.7%, asking the government an additional consolidation effort of 0.25% of GDP, remember the “Business”.

The main pressures negative for the Portuguese public accounts from the beginning of the year, were the reduction of the VAT in the restoration and return of salary cuts for state employees. In contrast, it has been the additional income from the IRS and social contributions to help the consolidation of accounts.