LISBON: Portugal's public sector deficit fell 20 percent to 4.74 billion euros ($5.02 billion) in the first ten months of 2015 as tax revenues rose thanks to a recovering economy, and spending fell, the finance ministry said on Wednesday.
The numbers were released a day before a new Socialist government comes to power, which has promised to raise public sector salaries, eliminate an extraordinary income tax and cut value added tax on the restaurant sector.
One key concern surrounding the incoming government, which will be supported in parliament by the far left Communists and Left Bloc, is whether it will stick to budget consolidation.
The ministry said overall revenues rose 0.5 percent between January and October, boosted by net tax revenues which advanced 5.3 percent. Spending fell 1.4 percent in the period, helped by falling costs with civil servants.
The outgoing centre-right government has promised that Portugal's budget deficit would fall below 3 percent of gross domestic product this year.
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