The injection of a new bank is a risk for the deficit – Economy

The reports of the execution of the state budget in the first quarter of 2018 to the guidance of the Public Finance Board (PSC) are positive. Excluding interest on the debt, the difference between expenses and revenues allowed a surplus of 1,264 billion.

The body headed by Teodora Cardoso says, however, that there are risks on the horizon for the 0.7% of GDP deficit with which the government wants to reach the end of l & # 39; year. Among them, the recapitalization of the New Bank

The injection of 792 million euros into the bank of BES was completed on May 24, 2018, using the resolution fund, an entity that, as the PSC recalls, is included in the scope of the general government. This means that this operation should have a negative impact on the execution of the budget of the second quarter of 2018.

But the risks that will meet the Minister of Finance, Mário Centeno, will not stop there. With the elimination of the twelfth regime, full payment of the Christmas allowance for civil servants and retirees will be concentrated in the last quarter of the year. If we add budget pressures to spending in the health and education sectors, there is more risk of reaching the 0.7% deficit goal.

In any case, note the CFP, a good indicator given by the primary balance, which does not include interest on the public debt, since it recorded a surplus of 1.264 billion in the first quarter of the year. fbAsyncInit = function () {
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