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The Portuguese Public Finance Council (CFP) begins a new biannual series of publications on Local Government Budget Outturn, an exercise that is done and presented in cash optics.
In 2017, the overall balance of municipalities was 460 M€, a reduction of 203 M€ in relation to the previous year. However, the balance registered fell short of what was forecast by the Ministry of Finance in the State Budget for 2017 for the Local Government as a whole (1020 M€), and insufficiently revised down (to 644 M€) in October in the State Budget for 2018.
Taking the aggregate municipal budgets as a benchmark, the increase in total revenue fell short of the forecast, while expenditure was well below the approved budget appropriations.
The total municipal debt considered for the legal limit decreased in the course of 2017: excluding non-budgetary debts and the exceptions legally defined for the respective limit, there was a reduction in 2017 of 493 M€. However, 27 of the 308 municipalities were above the total debt limit at the end of last year.
There was an overall improvement in the value of expenditure payable in 2017 compared to 2016. Non-financial liabilities fell by 104 M€ and accounts payable by 73.5 M€, while arrears were down 50.6 M€. Despite these favourable changes, there were individual cases of deterioration with three municipalities recording increases of over 1 M€ in arrears.
Date of last update: 04/04/2018
