Deficit was 3.2% of GDP in the first quarter – RTP

Carlos Santos Neves – RTP 24 Jun, 2016 11:40 / updated on Jun 24, 2016 13:46 | Economy

In the light of quarterly national accounts by institutional sector, INE writes that “with reference to quarterly figures and not the year ended in the quarter, the general government balance stood at about -1.4061 billion euros in the first quarter of 2016, corresponding to -3.2 percent of GDP. “ the government keeps targeting a budget deficit of 2, 2 percent in 2016.

in the same period 2015 slippage of public accounts out of 5.5 percent of GDP, ie -2344600000 of euros.

Given the figures of the National Statistics Institute, the Directorate-General for Budget decided to refer to the next Monday disclosure Summary of Budget Execution May.

from INE document stands an increase in total revenue by 2.3 percent, along with a drop of 2.7 percent in spending. Noteworthy is a rise in revenue from taxes on production and imports 9.3 percent, with a 14.6 percent share of GDP, and the decline in capital spending in the order of 26.1 percent, resulting from the fall in investment over the same period last year, and interest expense: 11.1 percent
Public, national

 The National Statistics Institute also notes a reduction in six tenths to 3.8 percent of gross domestic product, the borrowing of the general government sector in the 12 months ended in the first quarter of this year compared to the year ended in the quarter immediately previous.

This development stems from the combined effect of the 0.5 percent rise in revenue and the reduction of 0.6 percent in spending.

Addressing the adjustments dictated by the transition the public accounting balance for national accounts, INE points out: “Comparing the first quarter of 2016 with the same quarter, it was found that, despite a slight deterioration of the absolute value of the balance in public accounting (23.2 million euros ), the balance of national accounts has improved. “

competed for this purpose adjustments between interest paid and debt and taxes and social contributions.

” the significant reduction in capital injections in public enterprises is compensated by the difference under the sectoral delimitation adjustment in national accounts, having no impact on the general government balance, “the Institute.
” the success “

 This week Brussels reaffirmed the estimate for Portugal, a close deficit of three percent of gross domestic product. In the spring forecasts of the European Commission the forecast is 2.7 percent.

On the day the European Union learned that will include the United Kingdom in their ranks, Antonio Costa took the time the reaction to the outcome of the British referendum to claim once more, “the success” of the Government’s fiscal policy supported the left.

“the results released today by the INE on deficit the first quarter clearly demonstrate the success of this alternative, which seeks to turn the austerity page fulfilling what are the goals of European rules, “he advocated.

” We had in the first quarter the best result since 2008, with a reduction of 5 5 percent to 3.2 percent from the first quarter deficit, a reduction of EUR 900 million over the same period last year, and therefore means that we must continue this strategy we have been pursuing, which will consolidate our public finances, while giving priority – and have to give – growth, job creation, “he insisted

also the Ministry of Finance wanted signal.” the budget deficit of the first quarter more low since 2008 “.

c / Lusa