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The covid-19 pandemic cost the state 2,521.7 million euros (ME) at the end of August, due to lost income of 578.6 ME and increases in expenses of 1,943.1 ME, reported today the Directorate General. Budget (DGO).
“Until August, the implementation of the measures adopted in the field of fighting and preventing covid-19, as well as those aimed at restoring normalcy, led to a reduction in income of 578.6 million euros and an increase in expenditure of 1,943.1 million euros ”, can be read in the budget execution summary.
The impact with the covid-19 measures until August is greater than the 2,316 ME that had been registered until the end of July.
In August, according to DGO, on the income side, “extensions of the payment of taxes, payable from the 2nd semester, for a period of up to 6 months (242 million euros for VAT) and 78.8 million euros for withholdings at source (IRS and IRC) and Social Security contributions (115.4 million euros) ”.
On the expenditure side, dismissal was the measure with the greatest impact on public finances (822.1 million euros), followed by health expenses (291.6 million euros), “namely Individual Protection (EPI) and medicines “.
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“Spending on extraordinary aid to reduce economic activity amounted to 161.4 million euros”, highlights DGO.
With costs below 100 ME are the exceptional support to the family (82.9 ME), ventilators and other equipment dedicated to the National Health Service (63.1 ME), the stabilization supplement for workers who were in ‘dismissal’ ‘(48.3 ME), PPE, adequacy of workplaces, cleaning products and services (45.6 ME), human resources, including hiring, overtime and other assignments (46.9 ME), prophylactic isolation ( 34.5 ME), expansion of social unemployment benefit (37.5 ME) and also support for companies from the Adapt program (27.3 ME).
Expenditure on financial assets includes 43.3 million euros with the tourism support line for micro-businesses.
DGO points out that, “if there were no expenses associated with measures in the field of covid-19, the effective spending of Public Administrations would have grown by 1.6% compared to the same period of the previous year (instead of 4.9%) and the effective income would have decreased by 5.6% (instead of 6.6%) ”.
The deficit of public accounts worsens 6.552 million due to pandemic
The deficit in public accounts worsened by 6,552 million euros until August, totaling 6,147 million euros, the Ministry of Finance reported today, a figure lower than that registered in July.
“The budget execution in the public accounts of the Public Administrations registered a deficit of 6,147 ME until August, aggravation as a consequence of the pandemic of 6,552 ME compared to the same period due to the combined effect of contraction of income (-6.6%) and expenditure (4.9%) ”, indicates the Ministry of Finance in the statement that precedes the disclosure of the Summary of Budget Execution by the DGO.
According to the ministry supervised by João Leão, the execution of these first eight months of 2020 “highlights the effects of the covid-19 pandemic on the economy and public services, also reflecting the impact of the adoption of mitigation policy measures.”
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