State closes 2021 with lower deficit

 In Economy, News, State Budget

The Portuguese State has closed 2021 with a public accounts deficit of €8.7Bn for the year which was €2.8Bn less than in 2020.

“In 2021 the Public Administration deficit improved by €2.8Bn on 2020, it being €8.7Bn”, said the Ministry of Finances headed by João Leão in a communiqué issued on Thursday ahead of a budget report from the Directorate-General of the Budget (DGO).
The ministry had forecast that the deficit in the national accounts, which is used to make international comparisons, “should be significantly better on 2020 (4.3%), thereby complying with budget targets for the sixth consecutive year”.
The improvement results in a growth in revenues of 9.3%, greater than the growth in expenditure of 5.2%.
“The significant improvement in revenues is a result of a strong economic recovery, and in particular employment. The growth in expenditure results from the impact of extraordinary measures to support the economy and the increased costs resulting from the National Health Service (SNS)”, states the Ministry of Finances.