The state recorded a deficit of 2,553.2 million euros in the year to May, reflecting a decrease of 6,351.1 million euros compared to the same month in 2023, it was announced this Friday.
“The public administrations (PA) presented a deficit of 2,553.2 million euros until May 2024, which means a decrease of 6,351.1 million euros compared to the same period last year,” says the budget execution report published this Friday by the Attorney General’s Budget Office (DGO).
This dynamic was facilitated by the combined effect of lower revenues (3.7%) and increased expenses (12.5%).
The change was also influenced by the transfer last year of liabilities guaranteed by the Caixa Geral de Depósitos (FPCGD) Staff Pension Fund to the Caixa Geral de Aposentações (CGA) amounting to €3,018.3 million.
The State Duma stressed that this operation did not affect the balance of national accounts.
Adjusted for the effect of the FPCGD, the budget balance decreased by EUR 3,332.8 million compared to the same period last year, resulting in an increase in expenditure (12.5%) higher than the increase in revenue (3.7%).
The primary balance amounted to 523.4 million euros, which is 3.177 million euros less than last year.
In terms of revenue, the 3.7% increase, excluding the FPCGD transfer, takes into account the performance of collective revenues (9.9%) and non-tax and untaxed revenues (6.8%).
The combined effects of transfers (13.8%) and other income (33.7%) contributed to the increase in non-tax and non-deductible income.
The increase in primary expenses by 13.1% was taken into account by an increase in transfers (18.3%), personnel costs (7.4%) and purchases of goods and services (7.6%).
In terms of transfers, it is worth noting the costs of pensions under the general social security regime and the convergent CGA social security regime.
In addition, social benefits paid by the Social Security Service and transfers related to measures to soften geopolitical and inflationary impacts are added.
In turn, the impact of measures to update public sector wages is obvious in personnel costs.
“Excluding the budgetary impact of emergency measures, effective spending and primary spending showed growth of 11.3% and 11.8%, respectively,” he noted.
Author: Lusa
Source: CM Jornal
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