Portugal’s balance back in the red in April after SNS and storm payouts
Paying off Portugal’s national health service (SNS) debts and storm damage compensation has put Portugal’s public spending accounts back in the red it was revealed over the weekend.
It has been almost two years since the government last posted a budget deficit, but in April the State recorded a deficit of €1.5Bn in the first four months of this year, thereby reversing the surplus built up in the first quarter.
Expenditure grew considerably, driven by paying off debts in the National Health Service (SNS), while, on the revenue side, personal income tax (IRS) more than compensated for the decrease in other direct taxes, and VAT continued to be the main source for public accounts.
The summary of the budget execution published by the Budgetary Entity (EO) on Friday points to a clear deterioration in public accounts from March to April, which led to a significant decrease in the balance.
From a surplus of €209 million in the first three months of the year, the State moved to a deficit of €1,547.7 million in April.
Portuguese public accounts have not seen a negative balance since June 2024, although these latest figures only refer to the first four months of this year.
Source: Jornal Ecónomico; Credits; ESTELA SILVA/LUSA
Copyright: © 2026 LUSA – Agência de Notícias de Portugal, S.A.
