After three consecutive months in deficit, Portuguese public accounts returned to positive territory in July, with a cumulative balance of 282 million euros. This result represents, however, a reduction of more than two billion euros compared to the same period in 2024, when the surplus of Public Administrations amounted to 2.3 billion euros. The deterioration is largely due to the decline in the Central Administration balance, which fell by 3.5 billion euros.
Social Security posted a surplus of 4.42 billion euros in the first seven months, 1.2 billion more than in the same period last year. Local Administration saw its balance increase by 198 million euros, to 941.5 million euros, while Regional Administration improved its result by 62 million euros, now posting a surplus of 6.2 million euros.
The evolution of the accounts was marked by expenditure growth of 10.6%, higher than the 7.4% increase in revenue. Regularizations of overdue debts of the National Health Service reached 1.4 billion euros by July, well above the 166.7 million euros recorded in the same period last year. Without this effect, the surplus would have amounted to 1.7 billion euros. Among revenues, emphasis on VAT with growth of 6.8%, IRS with 5.7%, and IMI with 22.7%, while IRC declined 2.4%.
Public investment grew 40.4%, driven by projects at higher education institutions financed by the PRR, by CP payments for the acquisition of railway rolling stock, and by municipal investments in housing. Without charges related to public-private partnerships, investment would have grown 51%. The primary balance, which excludes interest charges, stood at 5.3 billion euros, 1
