Portugal’s Budget Shows Surplus Despite Economic Challenges

The Portuguese government has reported a budget surplus of €1.059.8 million for the first seven months of 2024, according to the Directorate-General for Budget (DGO). This marks a significant turnaround, as the country had been experiencing a budget deficit for several months. The surplus is attributed to a combination of increased government spending, which rose by 11.3%, and strong revenue collection, which grew by 4.3%. The positive performance in revenue is likely linked to Portugal’s robust economic performance in recent months. While the surplus is positive news, it is important to note that the figure is based on the government’s cash flow, which may differ from the official national accounts. Nevertheless, the surplus is a sign of the government’s fiscal health and its ability to manage public finances effectively.