Budget execution data show deficit of more than 5 billion euros until September

In contrast to the surplus that occurred in the same period last year, the balance of Portuguese public administrations is now negative, after the drop in revenue that brought about a decrease in economic activity and an increase in expenditure to face the harmful effects of the pandemic crisis. .

Minister of State and Finance, João Leão | Cristina Bernardo

The budget execution of public administrations until September shows a deficit of 5.179 million euros until September, as the Ministry of Finance said in a statement. This result means an increase of 7.767 million euros compared to the same period last year.

The deficit now observed results from a drop in revenue collected, as a result of a large and generalized decrease in economic activity, and an increase in expenditure, given the extraordinary support to families and companies. While revenue fell 6,9%, expenditure grew 5,2%, year on year.

The Ministry highlights, from this increase in expenditure, the 2.577 million euros of growth in Social Security expenses, of which 1.580 million of which are associated with the fight against the pandemic, in addition to the increases in expenditure on pensions (3,5%), unemployment (23,1%), sick pay (18,9%), family allowance (12,4%) or social benefit for inclusion of people with disabilities (23,8%).

In addition, investment in the National Health Service (SNS) skyrocketed, as a result of the extraordinary increase of 119%. Expenses with the NHS grew 5,5%, with a notable increase of 4,7% in the number of professionals in the NHS and personnel expenses, which grew 6,5%. The ministry also stresses that the SNS has also managed to reduce arrears by 291 million euros.

Another aspect that contributed to the result now known of budget execution in the first nine months of the year is related to the reinforcement of public investment in central administration and Social Security. The 37,3% increase in this item reflects, according to the ministry, the growth of the Railroad 2020 plan, as well as the acquisition of medical supplies for hospitals, as part of the fight against Covid-19.

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