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Public spending reached 112 billion in 2023 (42.3% of GDP)
Public spending reached 112 billion euros in 2023, corresponding to 42.3% of GDP (44.1% in 2022), the INE announced on Tuesday.
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Economia Despesa
"In 2023, the total public expenditure reached 112.4 billion euros, which corresponded to 42.3% of GDP, 1.8 percentage points (p.p.) less than in 2022. The weight of public expenditure in GDP in Portugal was 7.7 p.p. lower than the average of the Eurozone countries", can be read in the INE press release.
Compared to 2022, public expenditure increased by 5.2% in nominal terms, by 5.5 billion euros.
"Social benefits were the item in the economic classification with the highest relative weight, representing 41.2% of total expenditure. Wages and intermediate consumption corresponded to 24.7% and 12.5% of this total, respectively", it can be read.
"In the classification of expenditure by functions, in 2022, the last year for which this information is available, the social protection function concentrated 39.7% of the total, followed by the health function and the general services function of public administrations, which includes the interest paid, with 16.2% and 13.0%, respectively", explains the INE.
Social benefits grew by 3.4% in 2023 (7.5% in 2022). Its main component (71.0% of the total) corresponds to the pensions paid, which increased by 5.7%, reflecting the cost of pensions framed in the general Social Security regime and in the convergent social protection regime of the General Retirement Fund (CGA), associated with the automatic and intercalary update of pensions, as well as the increase in the costs associated with the generality of social benefits supported by Social Security.
[News updated at 11:07 am]
Read Also: INE releases public expenditure for 2023 today (Portuguese version)
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