SYNTHESIS INE@COVID-19, 29 Sept-2021

September . 29 . 2021 SYNTH SIS IN @ COVID-19 www.ine.pt page 6/8 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt Due to the split payment measures of taxes and social contributions taken in the context of the COVID-19 pandemic, an additional adjustment to the results in public accounting was necessary to include future payments in the revenue for the period in which the payment obligation was generated. This additional adjustment resulted in a higher VAT and Social Contribution tax revenue record of EUR 229million and EUR 111million, respectively, higher than in public accounts, referring to the payment prolongation measures due between the end of 2020 and the beginning of 2021 and which constitute revenue in 2020 from the perspective of the national accounts. Total PA expenditure increased by 8.5 % as a result of simultaneous increases: • + 6,0 % of current expenditure; • + 43.5 % of capital expenditure. The following changes mainly contributed to the increase in current expenditure: • + 4.2 % of social benefits; • + 3.4 % of the remnants; • -8,4 in interest expenditure. The increase in capital expenditure is largely explained by the recording, as capital transfers, of the operation granting the loan from the Directorate-General for the Treasury and Finance to TAP Air Portugal amounting to EUR 1,2 billion and the guarantee of the Regional Government of the Azores for the financing obtained by SATA Air Azores amounting to EUR 132 million. More than half of the increase in public expenditure between 2019 and 2020 reflected the direct impact of exceptional support measures in the context of the COVID-19 pandemic, corresponding to 4 % of total public expenditure in 2020. Among the public burdens of the pandemic are the following expenditures: • Subsidies to enterprises (2.7 % of total expenditure in 2020); • Intermediate consumption (0.5 %); • Social support for families (0.2 %); • Simplified layoff (0.9 %). The direct impact on the national accounting balance of exceptional support measures in the context of the COVID-19 pandemic was around -4.9 billion euro in 2020 (-2.3 % of GDP). More information available at: Main aggregates of General Government – 2020 (23 September 2021) General Government balances (million euros) 247 5,526 6,571 -11,684 -3,626 -5,893 -15 000 -10 000 -5 000 - 5 000 10 000 Net lending (+) / Net borrowing (-) Current balance Primary balance 2019 (Defini�ve) 2020 (Provisional Es�mate)