Portugal’s budget deficit totalled 799 million euros in January and February

22 March 2012

Portugal’s budget deficit totalled 799 million euros in the first two months of the year, which was almost three times the 274 million-euro deficit posted in the same period of last year, according to figures issued by the Directorate-General for the Budget (DGO).

In the period, State revenues fell 4.3 percent to 6.26 billion euros, whilst its expenditure rose 3.5 percent to 7.06 billion euros.

In terms of tax revenues, which is the largest component of State income, whilst from IRS, which is tax on individuals, the government managed to maintain its income (slight rise of 0.3 percent), in terms of IRC, which is charged to companies, the State netted 46 percent less and the public coffers earned over 130 million euros less in January and February of this year compared to the same period of 2011.

In terms of Public expenditure, the State managed to reduce its staff costs by 8.8 percent, thus saving over 130 million euros in the first two months against 2011 but expenses due to interest and other charges rose 175 percent, increasing by 263 million euros.

Another negative effect on the State’s accounts was the financial situation of state television station RTP – Rádio e Televisão de Portugal, which in February received an extraordinary transfer of 220.9 million euros to pay down its debt to the DEFPA Bank. (macauhub)