SYNTHESIS INE@COVID-19, 21 apr-2021

April . 21 . 2021 SYNTH SIS IN @ COVID-19 www.ine.pt page 3/11 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt More information available at: Main aggregates of General Government – 2020 (26 March 2021) Excessive deficit procedure – 1 st notification for 2021 Main Aggregates of General Government – 2020 The General Government sector presented a net borrowing of EUR -11,501 million, corresponding to -5.7% of GDP. This negative balance was mainly driven by the Central Government subsector and, to a lesser extent, also by the Local and Regional Government. The Social Security Funds subsector balance was positive. In 2020, the Central Government balance was EUR -13 billion (down by EUR 10 billion compared to 2019). The Local and Regional Government, which in 2019 had showed a surplus of nearly EUR 600 million, recorded a deficit of EUR 176 million in 2020. The Social Security Funds balance, although positive, deteriorated by EUR 900 million, going back to the one observed in 2018. General Government Balances Unit: EUR (million) Transaction code Transaction label 2019 2020 B.9 Net lending (+) / Net borrowing (-) (National Accounts Balance) 177 -11,501 Current balance 5,753 -3,957 B.9-D.41 Primary balance 6,058 -5,715 In 2020, the net borrowing of General Government (GG) amounted to EUR 11,501.1 million, corresponding to 5.7% of GDP (net lending of 0.1% in 2019). Gross debt of GG attained 133.6 % of GDP in 2020 (116.8% of GDP in 2019). The balance in public accounting deteriorated significantly in 2020, reflecting the budgetary impacts of the measures taken by the government in the context of the COVID-19 pandemic. The impact of these measures in the net borrowing will have amounted to around 2.3% of GDP. The total revenue of GG decreased between 2019 and 2020, mainly due to the decrease in taxes on production and imports and current taxes on income and wealth, reflecting the strong reduction in economic activity in 2020. The total expenditure of GG increased as a result of the simultaneous increase in current expenditure and capital expenditure, reflecting the budgetary impacts of the measures taken by the government previously mentioned.