Lisbon, June 24, 2026 (Lusa) - Portugal started the year with a budget deficit of 0.7% of GDP, according to first-quarter figures released today by Statistics Portugal (INE).

“Taking into account quarterly figures rather than the year ending in that quarter, the general government balance in the first quarter of 2026 stood at -€510 million, corresponding to -0.7% of GDP, compared with 0.0% in the same period last year,” reads the INE’s highlight.

Total revenue grew by 6%, below the 7.9% growth in total expenditure.

Looking at the components of revenue, “the 5.5% growth in current revenue stems mainly from increases in social contributions (7.1%) and taxes on production and imports (4.3%) and, to a lesser extent, from increases in other current revenue (14.4%) and sales (10.7%)”.

Capital revenue rose by 29% due to increased revenue from the Recovery and Resilience Plan.

MES/ADB // ADB.

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