Deficit in 2016, down 497 million and “will be no more than 2.3% of the GDP” – Diário de Notícias – Lisbon

The deficit of the general Government in public accounting decreased 497 million euros in 2016 compared to the previous year, getting us 4.256 million euros, announced today the Ministry of Finance.

The deficit of the general Government in public accounting decreased 497 million euros in 2016 compared to the previous year, getting us 4.256 million euros, announced today the Ministry of Finance.

in A statement before the usual disclosure by the Directorate-General of Budget (DGO) of the summary of budget execution, the ministry is supervised by Mário Centeno asserts that this reduction of the deficit resulted from “an increase of 2.7% of revenues, higher than the growth of 1.9% of the expense”.

in addition, the Ministry of Finance stresses that “face-to designed in the State Budget for 2016 (OE2016), the deficit was 1.238 million below budget, largely resulting from the containment of the actual expenditure, which was 3.009 million below the budgeted amount”.

The guardianship also states that this result – which is displayed in public accounting, that is, the optical box allows to anticipate that the deficit, in national accounting (to account for the European Commission), “will be no more than 2.3% of the GDP”.

The Finance indicate that the primary balance (which excludes the burden of the public debt) of general Government improved 747 million euros in 2016 compared to the previous year, getting us 4.029 million.

The ministry also indicates that tax revenue increased by 2.4% in 2016, compared to the same period last year, “having benefited from the program of recovery of tax credits’, that is, the Special Program for Reduction of the Debt to the State (PERES), which allowed taxpayers to pay the debts to the Tax Authority, but also to Social Security, with a forgiveness of all or part of interest and costs.

The revenue contribution grew 4.4%, “in line with the planned for 2016, the result mainly of the growth of 5,2% of contributions and levies to Social Security, which have accompanied strong employment growth,” said the ministry.

The numbers released by the Ministry of Finance and by the DGO are presented in public accounting, that is, take into account the record of incoming and outgoing cash flows.

however, the goal of the deficit is determined by the National Statistics Institute (INE) in the national accounts, the optics of the commitments, that is the one that is considered by the European Commission to assess the compliance of budgetary rules in europe.

In 2016, the Government of António Costa expects to reduce the budget deficit, in national accounts, to 2.4% of Gross Domestic Product (GDP), with the goal set by Brussels is a deficit of 2.5% of GDP. This value should only be disclosed by INE in march.