The Directorate-General for Budgetary Affairs (DGO) will publish budget execution figures for the period up to July this Friday after recording a deficit of 2.731 million euros in the first half of the year.
According to the budget execution report for June, this dynamic was due to the “combined effect of a decrease in revenues (4.1%) and an increase in expenditures (11.2%).”
Compared with the previous month, the deficit increased by 178 million euros, “recording a slowdown in the trajectory”.
The DGO stressed that the change in balance was “affected by the transfer in 2023 of all responsibilities guaranteed by the Caixa Geral de Depósitos (FPCGD) Staff Pension Fund to the CGA”, and that this operation did not have any impact on the balance in the national accounts.
“After adjusting for the FPCGD-specific effect, the AP budget balance [Administrações Públicas] decreased by 4,556.2 million euros compared to the same period last year due to the fact that the growth in expenses (11.2%) was greater than that of income (1.7%),” the organization indicated.
The balance sheet of the general government, published monthly by the DGO, is in public accounting, that is, it works from a cash perspective (cash inflows and outflows), which differs from the national accounting (liability perspective), which complies with European rules, with the balance sheet calculated by the National Statistics Institute (INE).
The most recent INE data shows that the general government sector recorded a deficit of 0.2% of gross domestic product (GDP) in the first quarter.
Author: Lusa
Source: CM Jornal
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