Portugal’s budget deficit in the 1st quarter higher than expected for 2015

10 July 2015

The Portuguese budget deficit in the first quarter stood at 3.1 percentage points above the target set by the Ministry of Finance for 2015, the Public Finance Council (CFF) said Thursday in Lisbon.

In its report on the first three months of 2015, CFF said “public adminsitration had a primary deficit of 0.7 percent” of gross domestic product (GDP) and an overall deficit of 5.8 percent of quarterly GDP” and added the deficit “is 3.1 percentage points above the target of 2.7 percent of GDP set by the Ministry of Finance for 2015.”

“This should be a warning,” says the CFF, “but is not necessarily indicative of expected performance for the whole year, as the annual evolution of some of the most influential budgetary aggregates, such as tax revenue, cannot be extrapolated based on observation of the first quarter,” of the year.

State debt in the first quarter rose to 643 million euros, but there was a reduction in the debt ratio, which “ended the period at 129.6 percent of GDP.”

Achieving the “goals for the debt ratio set in the stability programme for the end of 2015 (124.2 percent of GDP) also implies a decrease of about 5.4 percentage points of GDP by the end of the year and of 4.7 billion euros in nominal terms,” said the CFF. (macauhub/PT)