LISBON, 27 July (Reuters) – The Portuguese government reported on Monday a public deficit of 6.7 billion euros in the first part of 2020, an increase of 10 times compared to the same time last year, due to the impact of the coronavirus. Pandemic.
Total revenue fell by 9.5% and tax revenues by 14.5% due to a “strong drop in economic activity,” while spending increased by 5.4% due to subsidies to laid-off workers, benefits, the purchase of fitness equipment and the hiring of doctors and nurses, the Ministry of Finance said in a statement.
“The implementation of the budget highlights the effects of the COVID-19 pandemic on the economy and the public as a result of mitigation policy measures,” the ministry said.
Forecasts of falling the country’s gross domestic product this year due to the 6.9% government coronavirus outbreak at 9.5% of the Bank of Portugal.
Portugal’s tourism-dependent economy has been heavily affected by the pandemic and internal and external closures, and companies fear losing the important summer season due to restrictions that still exist.
The Portuguese government expects a deficit of 7% of GDP in 2020, a painful setback after the country had its first budget surplus in forty-five years at the end of 2019.
Last year, the country saw an expansion of 2.2% and a budget surplus of 0.2% of GDP.
Portugal, which recorded 50299 showed cases of COVID-19 and 1,719 deaths, began lifting a handful of restrictions imposed on a six-week blockade from May 4. (Report through Sergio Goncalves; Edited through Catarina Demony and Lisa Shumaker)
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