The latest Budget Execution Summary reveals that the surplus recorded in January represents an increase of 461.9 million euros compared to the same period last year, reflecting revenue growth (11.8%) outpacing expenditure growth (7.3%).
In the first month of the year, notable performances on the revenue side included tax revenue, which grew by 14.1% compared to January 2024, followed by contributory revenues (8%) and non-tax, non-contributory revenues (11.8%).
The same report indicates that state tax revenue rose to 4,218.1 million euros in January, an increase of 13.3% year-on-year, driven by VAT and ISP.
The IRS—whose public accounting revenue is influenced by withholding taxes—grew by 2.0%, despite the implementation of the new IRS Jovem regime, which took effect this year.
Concerning revenues, Social Security recorded a surplus of 722.5 million euros in January, surpassing the 513.5 million euros reported in the same period last year.
On the expenditure side, the year-on-year growth observed in January is attributed to increases in transfers (4.5%), personnel expenses (7.4%), and the acquisition of goods and services (14.9%).
The public administration balance presented monthly by the Directorate-General for Budget (DGO) is in public accounting terms, meaning it focuses on cash flow (money in and out), which differs from national accounting (commitment approach), relevant for European rules.
Last week, the National Institute of Statistics (INE) reported that Portugal ended 2024 with a budget surplus of 0.7% of Gross Domestic Product (GDP) in national accounting, exceeding the 0.4% projected by the government.
