In the third quarter, the general government balance changed from negative to positive: according to INE, Portugal achieved a budget surplus of 3.5% of GDP, compared with a deficit of 4.2% in the same period.
According to the National Institute of Statistics (INE), the balance of the enlarged government in the third quarter of this year reached a positive value of 1,904.1 million euros, which corresponds to 3.5% of GDP.
This surplus is partly attributable to the capital transfer received and recorded in the third quarter: the payment of € 1,114.2 million in prepaid margin and related application interest, which were withheld when the loan was disbursed. A European Financial Stabilization Fund for the Portuguese state, INE says. But even without this transfer, the budget balance in the third quarter will be positive, albeit smaller, which is explained by both an increase in revenues and a decrease in expenditures.
Compared to the third quarter of 2020, total revenues are up 15.9% and total expenses are down 1.4%, according to INE.
Capital gains from the refund of the prepaid margin and related interest contributed significantly to the revenue growth (resulting in a 729.1% increase in this item). Thus, excluding sales, which decreased by 0.4%, operating revenues increased by 11.2% on an increase in all components. Income and property taxes rose 13.1%, taxes on production and imports rose 14.9%, and social security contributions increased 6.4%.
On the cost side, operating expenses rose 2.2%, driven by an increase in social benefits (3%), personnel costs (4.6%), intermediate consumption (8.1%) and other operating expenses (25%).
On the other hand, interest costs were down 11.0%, while subsidies were down 39.1%, driven by the lower weight of measures to support companies in the context of the COVID-19 pandemic compared to the same quarter last year. “, – emphasizes INE.
Capital expenditures also declined 34.3% year-on-year, corresponding to an 84.8% decrease in other capital expenditures and a 26.6% increase in investment. This decline reflects “the underlying effect of government support for TAP in 2020, while the increase in investment was mainly due to investment made by the local administration,” says INE.
(Updated news)
