The Directorate General of the Budget (DGO) publishes this Thursday a summary of the budget execution in the government accounts for the first of January 2024, after 2023 ended with a surplus of 4.330 million euros.
The public accounting surplus (cash perspective) for 2023 compares with the €3.437 million deficit recorded at the end of 2022.
The improvement in effective income contributed to the fiscal situation for 2023, which grew by 12.1% year on year and which the Ministry of Finance attributes largely to the strength of the labor market, both in terms of volume of employment and wage growth.
Effective spending increased by 9.0%, adjusted for emergency measures, “reflecting the reduction in Covid-19-related measures and the significant number of measures taken to cushion the impact of the geopolitical shock.”
As detailed by the ministry led by Fernando Medina in a routine statement ahead of the publication of the budget execution report, measures related to the geopolitical shock amounted to 2.835 million euros.
Of this amount, 1,209 million euros correspond to measures affecting expenditures, while measures affecting revenues amount to approximately 1,627 million euros.
Budget performance data for the first month of 2024 will already reflect some of the revenue and spending measures taken earlier in the year, namely cuts to income tax tables to meet the new subsistence floor and rate cuts in the first five IRS brackets.
On the expenditure side, there are increases in salaries for civil servants, updates to pensions and the social support index, which, in turn, affects the amount of various social benefits.
Author: Lusa
Source: CM Jornal
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