Budget deficit improved until July, in cash-basis accountsBudget deficit improved EUR 1,153 million in the first seven months of 2017, according to data in cash-basis published by DGO. Both revenue and expenditure have increased, although at slower pace than expected by the Government, as forecasted in the State Budget for 2017, especially in the case of expenditure. Revenue has been affected by a weak performance of direct taxation, driven by an earlier execution of refunds on income tax and VAT, in comparison with 2016. However, data up to July revealed a lesser effect from this anticipation, with fiscal revenues increasing above the rate expected by the Government. On the expenditure side, spending on current transfers and on subsidies decreased until July; on the other hand, the remaining categories of expenditure saw increases in comparison with the same period of last year. Our assessment for the evolution of public accounts did not change. Probably, the budget deficit at the end of the year should not deviate much from the Executive’s objective, despite the existence of various factors that will put more pressure in budget execution on the second half of the year, namely in income tax revenue or related to the CGD recapitalization.