• Overall balance improved in 2017, in line with the rise of revenues (+3,8%) higher than expenditure (+1,6%). Considering the data in cash basis, it is highly probable that the deficit should have ended the year below the Government’s target (-1,4% of GDP, accrual basis). The official balance, on accrual basis, will be published by end of March, together with the decision whether to include the CGD recapitalization as an expenditure on the budget balance for 2017. This impact can reach 2,1 percentage points of GDP; however, this should be considered a one-off effect.
• Public accounts recorded an improvement in January 2018, benefiting from the tax revenues and social contributions, responsible for more than 80% of the increase in current revenues. Positive macroeconomic scenario should have contributed for this performance. On the expenditure side, interests and other charges contributed considerably to the growth of expenditure in January, but are solely associated with interests paid by the Reclassified Public Entities. Final note for overdue payments (unpaid debts for more than 90 days), which increased again in January, with special emphasis on Hospitals’ unpaid debt.