Friday, December 23, 2016

Budget deficit reaches 2.5% in September – the Daily News – Lisbon

Numbers were Friday disclosed by the National Statistics Institute

The budget deficit of the general government stood at 3.405,6 million euros until September, or 2.5% of Gross Domestic Product (GDP), according to data today released by the National Institute of Statistics (INE).

according To the quarterly accounts by institutional sector, published today by the INE, in national accounts, the optics that counts for Brussels, in the first three quarters of 2016, “the overall balance of general government stood at -3.405,6 million euros, representing a marginal 2.5% of GDP, a value that compares with a deficit of 3.4% in the same period last year.

THE INE explains that this improvement of the balance was determined by an increase in total revenue at 0.8%, but also by a decrease in spending of 1.1%.

on The revenue side, highlights the increase in 5.6% of revenues taxes on production and imports and 3.6% of the social contributions. In spending, the decline of the capital expense in accounting for 32.7%, which represented 1.7% of GDP (2.7% of GDP in the same period of the previous year), verifying a decrease of 28.4% on the investment.

According to the statistics office, the financing capacity of the economy was 0.9% of GDP in the year ended in the third quarter, 0.1 percentage point higher than the one observed in the previous quarter.

as for the need of financing of general government increased by 0.1 percentage points, from 3.5% of GDP in the year finished in the second quarter to 3.6%, the result of the reduction of 0.1% in revenues and an increase of 0.3% of the expense.

the goal of The Government for the entire year is 2.4% of GDP, and the target set by Brussels is 2.5% of GDP.

The deficit of 2.5% of GDP for the period between January and September of this year is within the range estimated by the Technical Unit for Budgetary Support (UTAO).

The independent technicians that support the parliament have calculated that the deficit has been set between 2.5% and 3.1% of GDP, pointing to a central value of 2.8% of GDP.

On Wednesday, the prime minister, António Costa, has returned to the show-confident that the deficit this year will be below 2.5%, the european target.

“For the first time we will have our budget deficit to comply with the rules of the European Union. Now that you have a few days to the end of the year, we can already say with peace of mind and security that the deficit will be even below 2.5%, the limit that had been set by the European Commission. We will be below, with the comfort, of 2.5%,” stressed the head of Government.

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