The public deficit last year in public accounting, amounted to 7074 million euros, according to budget execution summary released Friday by the Budget Directorate-General (DGO) .
This figure reflects a reduction of 1.7615 billion euros compared to the 2013 deficit and is 655 million euros lower than estimated by the Government for 2014 on the State Budget document for 2015.
The reduction for the expected in October, OE in 2015 was due to a better performance than expected by the Executive in tax revenue, equanto the expense of the administrations public was under the then expected.
According to the document the DGO, to improve the general government balance in 2014 compared to 2013 contributed a reduction of the effective spending € 1,192.7 million and an increase in actual revenue of € 568.8 million.
That is, the reduction of expenditure contributed 67.7% of the improvement in the budget balance, while revenue growth had a contribution of 33.3%.
These figures, however, include an extraordinary factor that distorts the annual comparison. This is the Tax Debt settlement Exceptional Regime and Social Security (RERD), which allowed the public coffers raise EUR 1.2 billion at the end of 2013, divided between about billion tax and another 200 million debt to Social Security.
The evolution of tax revenue of General Government last year clearly shows this effect. The increase compared to 2013 was 772.5 million euros, but excluding the RERD made of, would have reached 1770 million. This increase allowed the government to a large extent, accommodate the leads of the Constitutional Court the flagship measures such as the extension of wage cuts in the public service.
Without eliminating this extraordinary effect, the Revenue of total general government rose by 1.9% in 2014 compared to 2013, a value that was above the government forecast in October, entered in OE 2015 which pointed to an increase of 1.5%.
Considering only the state subsector, the cumulative net tax revenue in 2014 reached a record value of 37,111 million euros. A value that represents an increase of 2.3% compared to 2013 – in line with the envisaged by the government in October, the OE 2015 – and reaching the 5% excluding the effect of RERD
Net sales of direct taxes grew by 0.7% at the State level (4.8% excluding the RERD), with an increase of 4.4% to the IRS level (5.7% excluding the RERD ) and a 11.3% reduction in CRI. Excluding, however, the effects of RERD and the extraordinary investment tax credit, the IRC would have registered an increase of 4.1%, says the DGO.
Now in indirect taxes, Net revenue increased 3.8% compared to 2013 (5.1% growth excluding RERD), VAT is destcando, with an increase of 4.3% (5.8% excluding the RERD).
As for spending, only two items show an increase in 2014 compared to 2013: personnel expenses (increase of 94.3 million) and interest and outors charges (increase of 150.4 million).
The primary balance (ie excluding interest payments) has improved to 1.9119 billion euros, settling in a € 1,029 surplus, 7 million.
The DGO highlights the contribution to this result of the reduction in primary expenditure (expenditure excluding interest) € 1,343.1 million.
The figures released by the DGO are in public accounting and only when the National Statistics Institute to transpose the national accounts will be known for sure the value of the 2014 deficit to GDP. But this week the Minister of Finance, Maria Luís Albuquerque, has said he was “comfortable” with regard to compliance to the deficit target, which is set at 3.8% of GDP.
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