Portugal’s budget deficit contracted by 41 percent in January to 436 million euros

21 February 2012

Lisbon, Portugal, 21 Feb – Portugal’s budget deficit totalled 436 million euros in January, as compared to 742 million euros in the same period of 2011, which was a drop of 41 percent year-on-year, the Directorate-General (DGO) for the Budget said in Lisbon.

According to the latest summary of budget execution from the DGO, the drop was mainly due to expenditure being 12.7 percent lower in January 2012 as compared to January 2011, as the States’ revenues fell 6.1 percent due to a drop in the amount of taxes collected.

The report showed that tax revenues fell by 7.9 percent in January, mainly due to a 19 percent drop in direct taxes, such as income tax (IRS) and company tax (IRC).

Expenditure fell due to a 7 percent reduction in transfers to the National Health service (SNS) following budget containment measures outlined for the health service as well as the 6.3 percent drop in pension contributions in January. (macauhub)