The monthly summary indicates that the surplus “represents an improvement of 4.680.6 million euros compared to the same period last year (which recorded a deficit of 2.672 million euros), justified by revenue growth (13.9%) that surpasses that of expenditure (4.5%),” according to the document released by the Budgetary Authority, formerly known as the Directorate-General of Budget (DGO).
The report states that the 13.9% increase in revenue considers the performance of tax revenue and both contributory and non-contributory non-tax revenues.
In contrast, primary expenditure rose by 4.8%, with increases in personnel expenses (8.5%), transfers (3%), and investment (15.6%).
In a statement issued alongside the data release, the Ministry of Finance expressed confidence that the budget execution reinforces “the government’s trust that the country will achieve a budget surplus this year, in national accounts, of around 0.3% of GDP” (Gross Domestic Product).
The public administration balance published monthly by the Budgetary Authority is in public accounting terms, meaning it follows a cash basis (money in and out), which differs from national accounting (commitment basis), relevant to European rules.
