Portugal’s taxpayers are reducing the national deficit at a record pace with tax revenues growing at double the rate predicted in the 2017 Budget.
The Government says the increased flow of citizens’ money into the Treasury, €26.6 billion in the first eight months of this year, represents an increase of €1.5 billion on the same period last year is due to the accelerating economy.
According to the limited data released by the Government prior to the publication of the budget summary, fiscal revenue was up 6% by the end of August, double the 3% projected in the budget.
Portugal’s public accounts were still in deficit between January and August, but at a figure almost half that of the same period last year with a deficit €2.034 billion, €1.901 billion better than last year.
The fall of the deficit in the first eight months of the year was helped, not just by the 4.3% increase in revenues, but by a primary surplus of €3.734 billion, an increase of €2.087 billion.
VAT revenue grew 7.2% in the first eight months of the year, while income tax revenue grew 4.2%. Add these to a rise in Social Security contributions and a 24.7% rise in corporation tax, the result is fiscal happiness in Lisbon's corridors of power.
As for spending, the National Health Service expenditure grew 4.8% in the period, "exceeding the sum of the growth rates of the expenditure of the last two years."
