Public sector budget deficit in first five months narrows to €959m

Page created: Wednesday, 25 June 2014 9:47 GMT

Deficit  Public Sector

Portugal’s public sector budget deficit in the first five months of this year was €959 million, a figure that “compares favourably” with that in the same period of last year, the Directorate-General of the Budget said in a statement on Tuesday.

According to the monthly summary of budgetary execution, the deficit was €631 million smaller than in the first five months of 2013.

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The figures are calculated according to the formula required by the International Monetary Fund in order to make it possible to assess whether the country is keeping to the targets laid down under the terms of its euro-zone bailout.

However, the deficit target of 4% of gross domestic product laid down under the bailout is calculated according to national accounts, under commitments made to the European Union; the National Statistics Institute is to publish the first-quarter deficit figure on Friday.

According to the summary released on Tuesday, the Portuguese state in the five months paid out more than €875 million in interest and commissions to international creditors for loan guarantees provided under the bailout.

Interest paid was €857.8 million, 6.1% more than in the first five months of 2013, while commissions amounted to €17.8 million, down 5.8% on a year earlier.

Meanwhile, tax receipts in the period were up 3.4% on the year, at €14.624 billion, according to the report.