Portugal’s budget deficit increases to 5.8 billion euros in first seven months of 2014

27 August 2014

Portugal’s budget deficit increased by 389 million euros to 5.8 billion euros from January to July, according to a budget execution report issued in Lisbon by the Directorate-General for the Budget.

Compared with the first half of 2014, when it reached 4.192 billion euros, the general government deficit increased by 1.631 billion euros in July.

In a statement, the Finance Ministry said the increase was due to payment of holiday pay in July (last year these payments were made in November) and the salaries at 2010 levels as determined by the Constitutional Court.

According to the statement, excluding interest on Portuguese public debt, the deficit would be 965 million euros.

Meanwhile, the Portuguese government Tuesday approved the second draft law amending the State Budget for 2014, without introducing “any change to tax.” (macauhub/PT)