The State recorded a surplus of 6,304.1 million euros until September, an improvement of 610.8 million euros compared to the same period last year, according to the budget execution summary released this Friday, October 31st.
“Public Administrations (PA) presented an overall balance of 6,304.1 million euros (compared to 5,693.3 million euros in the same period last year), which translates into a year-on-year increase of 610.8 million euros”, reads the document released by the Budget Entity (EO), formerly the General Directorate of the Budget (DGO).
This evolution was due to the fact that the increase in revenue (6.6%) was greater than that in expenditure (6.3%).
On the revenue side, the increase in tax revenue from Public Administrations stands out, which was based on the evolution of State revenue, with essential contributions from VAT (8.7%) and IRS (7.1%), “also recording significant increases in ISP (12.3%) and Tobacco Tax (10%), while IRC showed a negative variation (-4.3%)”.
According to the budgetary entity, Local Government revenue also recorded a relevant increase, with emphasis on IMT (28%).
In terms of expenditure, personnel expenses stand out, which grew 8.7%, mainly due to “measures to increase the remuneration of workers in public functions”, explains the EO.
On the other hand, expenditure on interest and other charges borne by Public Administrations fell by 1.1%, due to the behavior of interest borne by reclassified public entities, in particular by Metropolitano de Lisboa and CP – Comboios de Portugal, as well as, to a lesser extent, by the National Entity for the Energy Sector.
State tax revenue rises 5.8% to 48,014.8 million
State tax revenue stood at 48,014.8 million euros until September, an increase of 5.8% compared to the same period in 2024.
“In September 2025, the accumulated tax revenue of the State subsector totaled 48,014.8 million euros”, reads the document released by the Budgetary Entity.
At issue is a year-on-year increase of 2,618.7 million euros, or 5.8%.
On the direct taxes side, there was a growth of 588.1 million euros (+2.7%), justified by the evolution of net income from IRS – Personal Income Tax, which grew 7.1% due to the reduction (21.9%) in refunds.
There was also a slowdown in the growth of net IRS revenue, which fell from 16.5% in August to 7.1%, with the application of reduced withholding tax rates in August.
Conversely, net revenue from IRC – Corporate Income Tax totaled 4.3% less, an evolution justified by the reduction in self-assessment payments.
In indirect taxes, there was an increase of 8.5%, compared to the same period of the previous year, due to the performance of revenue from VAT – Value Added Tax (+8.7%).
During this period, there was also an increase in net revenue from the ISP – Tax on petroleum products by 12.3% and the Tax on Tobacco by 10%.
Without the effect of the extension of VAT payment, revenue from this tax totals an additional 9%.
Thus, without this same effect and the payment of deferred taxes under IRC, “tax revenue showed a year-on-year growth of 5.6% (+2,594.1 million euros)”, he explained.
Social Security surplus increases to 4,745.4 million euros
The Social Security surplus rose to 4,745.4 million euros in the first nine months of the year, compared to the same period in 2024.
The accumulated value up to September is higher than the 4,308.3 million euros reported in the same period last year.
Until August, the surplus was 4,408.4 million euros, meaning there was an increase compared to the previous month.
Effective revenue reached 33,434.5 million euros, while effective expenditure stood at 28,689.1 million euros.
Highlights include transfers from the European Union relating to the Recovery and Resilience Plan, which increased by 51.1% compared to the same period last year, as well as expenses with the Solidarity Supplement for the Elderly, which increased by 42.6%.
On the other hand, there are areas where there was a reduction, such as expenditure on Social Insertion Income, which fell 3.9% compared to the same period last year, and the exceptional and temporary measures relating to the covid-19 pandemic, which have been discontinued and recorded a drop of 74.1%.
Late payments increase to 1,007.6 million euros
Late payments from public entities reached 1,007.6 million euros by September, an increase of 366.3 million euros compared to the same period last year.
“At the end of September, late payments from public entities amounted to 1,007.6 million euros, which represents an increase of 366.3 million euros compared to the same period of the previous year”, indicated the document.
Compared to the previous month, the increase was 107.9 million euros.
According to the document, the year-on-year evolution is justified by growth in the health sector (375.9 million euros) and in reclassified public entities (15.9 million euros).
However, it was mitigated by the decrease in local administration (-17.3 million euros) and regional administration (-11.7 million euros).
In turn, the monthly variation was influenced by developments in healthcare entities (116.2 million euros), but this increase was “partially counteracted” by the regional administration (-6.5 million euros) and the local administration (-3.5 million euros).
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