From a strong surplus to a deficit of 259 million euros. By March, the budget balance was back in the red, something that has not happened since the end of 2022.
The Ministry of Finance stated in a brief statement, preceding the issuance of the budget implementation summary, that “until March, budget implementation, in public accounting, recorded a deficit of 259 million euros, which is the first since December 2022, which means on an annual basis (compared to the period from January). to March 2023), a decrease in the budget balance of 5.3 billion euros.
“The annual deterioration of the budget balance, in the first quarter of 2024, represents €2.3 billion, if the base effect of the CGD pension fund conversion in 2023 is removed,” Minister Joaquim Miranda Sarmiento's office stated. Worth 3 billion euros. But the Office of the Minister of Finance indicates that this deterioration is justified by the measures taken by the previous government, when Fernando Medina was Minister of Finance. “It should be noted that in January 2024, there was a surplus of 1,177 million euros, which turned into a deficit of 259 million euros, in March.
This strong deterioration in the budget balance between January and March 2024 is largely the result of decisions and commitments made by the previous government this year. And in many cases, after the March 10 elections.”
According to the government’s expectations contained in the stabilization program, the surplus in the national accounts is expected to reach 0.3% of GDP at the end of this year, and these expectations do not yet include new measures that the executive authority may implement in the coming years. months, as is the case with IRS relief.
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