Budget surplus up 4.3% to September – expenditure up 11.1%

Portugal’s budget surplus was up €5,705,2 million to September according to data from the Directorate-General for the Budget (DGO).

The surplus to August had been 11 times less – €475.4 million. Compared to the same period there was a fall of €4.6 million.

The DGO says that in the first nine months of the year, expenditure grew 11.1% and revenues were up 4.3%. On the increased expenditure side, there was an increase of 12.5% with transfers, mainly pensions, an increase in staff costs (7.9%), that included salary updates for the public administration, and an increase in the cost of goods and services of 10.8%, in particular in the purchase of medicines and other services by the National Health System.

IRC tax made up the main contribution to increased tax revenues growing 23.8% while IRS taxes brought in a modest increase of 1.2%.

Indirect taxes saw an increase in stamp duty of 10.9%, followed by the Tax on Petroleum Products (ISP) where revenues increased by 9.8%, and VAT (+2,2%). Only taxes on vehicles (ISV) saw a drop in revenues of 3,2%.

Outside of taxes, the government increased revenues on income from property (38.3%), largely from dividends from CGD to the State.