The budget deficit of the general Government until October amounted to € 4.430 million euros, falling to 357 million compared to the same period of 2015, highlighted the Ministry of Finance in a statement that anticipated the disclosure of the bulletin of budget execution of the Directorate-general of Budget (DGO). The office of Mário Centeno gives account of a reduction of the debt is not financial of 488 million euros compared to October of 2015, although the payments in arrears for more than 90 days have increased.
“The accumulated deficit up to October of the Public Administrations decreased by 357 million euros over the same period, underlining the improvement observed until September. This performance results from the increase of 1.7% of revenue, higher than the growth of 1.1% of the expense,” reads the announcement, which further supports that the results of the last two months of the year will be supported by a positive performance of economic activity.
“Until October, the deficit stood at 4.430 million euros, representing 80,7% predicted for the year, when the 2015 had a value close to the annual deficit. The primary surplus of general Government was 3.118 million euros, an improvement of eur 683 million in the face 2015″, quantifies the ministry of Finance. The value of October increased compared to 2.924 million euros from the previous month, the Government estimates that the deficit will reach 5.493 million euros at the end of the year.
The tax revenue only increased by 0.6% compared to 2015, below the nominal growth expected for the economy, which the ministry justifies with an increase of tax refunds this year to 887 million euros. The data relating to the budgetary impacts of the labour market are better, helping to explain the increase of 1.7% in the total revenue: “the revenue contribution increased to 3.6%, mainly due to the growth of 4.5% of contributions and dues for Social Security. Throughout the year, in the records of the Social Security, employment has shown a year on year growth average close to 3%,” reads the announcement.
on The expenditure side, the ministry points out that the increase of 1.1% is below the forecast included in the Budget of the State – the rest is also true to the recipe – for the contribution of a fall of 2.8% in the expenses with the acquisition of goods and services, and the indentation of 14.6% in expenditure with unemployment benefits. To grow above the budgeted amount are the expenses with salaries, with the salaries certain and permanent rise of 2.8% year-on-year, accusing the reinstatement of pay cuts and a reduction in the number of workers is much lower than assumed in the state budget.
the Face of the criticism that may be to postpone the expenditure, the government also notes in the press release that “the debt is not financial in the AP – expense without the corresponding payment, including delayed payments – fell to 488 million euros” in the face of October 2015. The bulletin of the DGO gives an account of this fall to values in the house of the 2.2 billion euros. Considering only the debts overdue for more than 90 days the value approaches of 1,200 million euros, while climbing up on the previous year, an evolution that is hidden in the communiqué of Finance, and only visible in the report of the Directorate-general.
The figures now disclosed are in public accounting, the optics that records the inputs and output of money, and not the commitments made by public authorities. The numbers that are relevant in international terms are compiled in the national accounts, which instead of the logic box considers the commitments of revenue and expenditure. Is according to this point of view that the government has made a goal of reaching a deficit below 2.5% of GDP this year.
The government argues that in the last months of this year, if you notice a dissonance between the data in public accounting and in national accounting. In their accounts, the budget execution in the second half in public accounting will be worse than the value in the national accounts at 740 million euros, being that the deficit in public accounting until expected to increase between 2015 and 2016, of 4.752 million euros to 5.493 million euros.
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