Budget Deficit Could be Under 5.9%

Page created: Thursday, 16 January 2014 17:54 GMT

Deficit  GDP  Teodora Cardoso   Total Debt

Portugal’s public finance council said on Thursday that the budget deficit could be under 5.9% of Gross Domestic Product (GDP), but in the case of the public debt only a series of specific operations would allow the target to be attained.

According to the council, led by Teodora Cardoso, “the fiscal developments until the end of the third quarter both on the side of revenues and expenses, let us admit that the public administration deficit could be lower that the latest estimate from the finance ministry”.

The result was greatly influenced by tax revenues, which the council said up until September “grew year-on-year almost twice as fast as expenses”.

In terms of public debt – 127.8% of GDP -, the council pointed towards a reversal in growth in the third quarter but still considered that in order to attain the objective, there would have to be operations to reduce the debt such as social security and the public debt regularisation fund using money from privatisations to buy back public debt.