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Until November, the budget execution in the public accounting of the Public Administrations (PA) had a deficit of 8,691 million euros, which represents an increase of 9,267 million euros compared to the same period, which is justified by the impacts of the covid -19 “. , Finance revealed, in a note sent to the newspapers about the budget execution for the period from January to November.
“The deterioration of the balance, as a consequence of the pandemic” is due to a sharp fall in income (-6.3%) combined with a 5.3% increase in public spending.
In addition, the note from Minister João Leão’s office says that the blister of the budgetary imbalance also reflects the “adverse impacts on the economy that are reflected in the sharp reduction in tax and contributory revenues” and “the increase in spending associated with the extraordinary measures aimed at supporting families and businesses “.
Spending increased by € 2.7 billion, mainly due to “layoff measures (+880 million euros), including the stabilization supplement, acquisition of sanitary equipment (+491 million euros), support for the reduction of economic activity and progressive recovery (+385 million euros) and in the field of incentives extraordinary to normalization (+ 248 million euros) “.
João Leão’s note repeats that investment in the National Health Service (SNS) almost doubles: “it grows by 96.1% and surpasses all-time highs, to 242 million euros.”
Finance still attracts with investment in people. They say that personnel costs rose 5.9% “also due to the 5.9% increase in the number of health professionals in the SNS until November (+7,893 workers)”.
In a more general perspective, the note indicates that “spending on salaries of public servants grew by 3.7% reflecting the thaw of careers, highlighting the strong increase of 5.6% in spending on salaries of teachers.”
The Ministry of Finance also states that the dismissal measures cost 880 million euros, including the stabilization supplement.
The purchase of sanitary equipment cost an additional € 491 million, supporting the reduction of economic activity and a gradual recovery absorbed an additional € 385 million in expenses, and the extraordinary incentive for standardization implied an additional cost of € 248 million.
Income sinks
The increase in the deficit until November incorporates a reduction of 1,574 million euros on the income side compared to the same period in 2019.
This “mainly reflects the impacts of the suspension of payments on account (-791 million euros and the loss of tax income due to exemption from TSU payment in the simplified dismissal regime, support for progressive recovery and financial incentive for normalization of Business activity is estimated at about 518 million euros, says the official note.
Added to this is the postponement of the VAT income paid in November and which will be paid through quota plans and measures to exempt or reduce the contribution rate (-265 million euros) ”.
jcash ornalist
