Portugal’s budget deficit in 2015 reaches 3.1 pct of GDP

30 March 2016

Portugal’s budget deficit is expected to have totalled 3.1 percent of Gross Domestic Product (GDP) in 2015, which “will not allow the closure of the excessive deficit procedure”, according to an estimate of the Technical Budget Support Unit (UTAO).

In the document issued Tuesday in Lisbon, UTAO said the estimate excludes extraordinary transactions (including the resolution measures applied to Banco Internacional do Funchal – Banif) and, in adjusted terms, “the reduction of the budget deficit amounted to 0.5 percentage points of GDP compared to 2014.”

UTAO points out that the 3.1 percent deficit adjusted for extraordinary measures “exceeded the annual target of 2.8 percent of GDP by 0.3 percentage points” as set out in the State Budget for 2015″ and that to close the Excessive Deficit Procedure in 2015, “the overall general government deficit, including Banif, needed to be below the threshold of 3 percent of GDP”.

A few days ago the National Statistics Institute said the 2015 budget deficit had totalled 4.4 percent of GDP, or 7.893 billion euros, with state intervention in Banco Internacional do Funchal accounting for 1.4 percentage points, higher than originally expected. (macauhub/PT)