Interest expense, PPP hospitals and fire in 2015 start – Business Journal – Portugal

In the first two months of the year, the state spent three thousand million with these three headings, an increase of 26% compared to 2014.

The accounts of the Central Administration State (ministries and institutes, but not Social Security) reflect a significant worsening of the financial position of the State in the first two months of the year, which is justified by a significant increase in three expenditure headings: interest expense, PPP and Hospitals which together amounted to three billion euros, an increase of EUR 600 million year on year, concludes the review to the Budget Execution report of the Directorate-General of Budget (DGO).

The Government says that the sharp increase in spending (6.1%) is “mainly explained by increased spending on investment as a result of the burden of PPP, and interest and charges of direct debt of the state”, reads a note sent to the press that complements the bulletin DGO, which later also highlights the contribution of spending on hospitals.

The expense of “the acquisition of goods and services [approximately EUR 1,400 million according to the bulletin of the DGO] shows a 6.6% increase due mainly to advances of contracts with hospitals program and settlement of charges brought forward as part of the NHS, “the Ministry of Finance.

Have the side of investments – dominated by spending on PPP – there has been a 54% increase to EUR 475 million, essentially justified by expenditure for the Portugal Roads

Finally, the “. interest expenses [1.140 million, according to the bulletin of the DGO] grew by 48.7% [compared to the period January and February 2014], due to the concentration of interest payments in February, emissions OT made in the last 12 months and the increase in interest paid to the IMF, “explains the Executive.

Still in Central Administration, personnel expenses increased by 0.4% to 14,857 million euros, which, according to the Executive, reflects “the impact of changing the remuneration policy, partly offset by the effect of base compensation under the Program Terminations by Mutual Agreement and the elimination of the employer contribution to the ADSE.”

the advance of 6.1% of spending, joins a fall of 1.2% in actual revenue of Central Administration, explained by a 1.8% decline in direct taxes and 21% in revenues from sales of services.

Considering the must and there, the ministry realizes a budget deficit in the first two months of “791 900 000 euros, and the primary surplus (which excludes interest) reached the value of 330.5 million euros, “both values ​​are worse than a year ago, with surpluses of 141 and EUR 613 million respectively.

Best news comes from Social Security, with a surplus of “382.0 million, reflecting an improvement of 287.4 million over the same period, while there has been an increase in revenue of 5.2% and a reduction of expenditure by 2.1%”, justified by increases in European Social transfers and employees’ contributions, plus a reduction in spending on pensions and unemployment benefits.

A total of Public routine administration (including in addition to the central government and social security, autonomous regions and Local Authorities), the Treasury realized a budget deficit of EUR 240 million in January and February, with the primary balance (which excludes the cost of public debt) to settle a positive value of EUR 930 million .