LISBON: Portugal’s public sector deficit shrank 38 percent to 2.57 billion euros ($3.21 billion) last year, with revenues coming in well above the levels budgeted for the year, although expenditure also exceeded the plan to a lesser extent. The finance ministry said in a statement on Thursday the primary balance, excluding debt costs, reached a surplus of more than 5.7 billion euros, a steep 41 percent above a year earlier. Revenues rose 3.8 percent in 2017, while spending increased 1.6 percent. The 2017 budget had envisaged a 1.4 percent and 0.5 percent increase, respectively. For the second year running, the government has ensured that the budget targets are met. The rigorous budget execution also allows the reduction of public debt as a share of GDP,” the ministry said.
The official figure for the deficit as a percentage of GDP will be available in March. The official full-year deficit target is 1.4 percent of GDP, which would make it a new record low in more than four decades of the country’s democratic history. Prime Minister Antonio Costa has said the budget gap should narrow even further to below 1.3 percent from 2 percent in 2016.
