The General Directorate of Budgets (DGO) has published this Friday the summary of budget execution until July, after having registered a surplus, in public accounting, of 1,113 million euros until June, an interannual improvement of 8,429 million euros.
The year-on-year improvement in the budget balance in the first six months of the year is mainly explained by the dynamism of economic activity and the labor market and the base effect on the spending side.
According to data released by the Government, until June revenues grew by 19.7% compared to the same period last year and 14% compared to 2019.
The collection thus accelerated with the recovery of the economy, reflected in tax and contribution revenues, which increased by 21.6% compared to the same period in 2021.
Expenditure, for its part, decreased by 1.7% compared to the same period of the previous year, highlighting the Ministry of Finance that reflects the lower impact of the measures associated with covid-19 (-28%), interest expense and others charges (-15.3%) and capital transfers to Novo Banco.
Expenditure without these effects grew by 2.8% in the first half of 2022 compared to the same period of the previous year.
According to data from the DGO, the response to the pandemic cost the State 2,306.3 million euros until June, due to a loss of income of 292 million euros and an increase in spending of 2,013.8 million euros.
Source: Observadora
