For the interested reader, the cash data for the January-September 2011 budgetary execution (released yesterday by DGO – publicly available here) points to a State budget deficit of 3.8% of GDP which compares to a deficit of 5.4% of GDP over the same period back in 2010. The year-on-year growth rates of revenues and expenditures of the State were 5.2% (1.9% in 2010) and -3.8% (2.0% in 2010), respectively.
Jornal de Negocios’ news elaborate on this by reporting that expenditure with public employees is falling more than 6%, reflecting the 5% average wage cut that took place earlier this year (see here). Simultaneously, the revenues’ side is over performing, mostly driven by direct taxes paid by enterprises and VAT (see here).
All in all, the State budget deficit is falling more than 30% since January (more here).