Portugal’s state deficit rises 1.4 pct in 2010 to 14.249 billion euros

21 January 2011

Lisbon, Portugal, 21 Jan – The provisional deficit of the Portuguese state totalled 14.249 billion euros in 2010, as compared to a deficit of 14.057 billion in 2009, a rise of 1.4 percent, the General Directorate for the Budget (DGO) said Thursday in Lisbon.

Also according to the DGO, actual revenues rose by 4.6 percent and actual expenditure rose 3.7 percent and this variable was “lower by 0.9 percent against the target estimated in the State budget for 2011.”

The DGO noted that the State deficit had been influenced “by the fact that 2010 expenditure included an amount of 1.001 billion euros associated to paying off a financial debt for military equipment,” specifically two submarines bought from Germany.

“Given the exceptional nature of this charge in 2010, the year on year variation of this expense stands at 1.6 percent, which is related to a sustained slowdown in the last three months of the year,” the DGO concluded.

The Portuguese government recently announced it expected the public deficit for 2010 would fall to a lower level than the 7.3 percent of GDP target, and aimed to decrease it to 4.6 percent this year. (macauhub)