Portugal unveils draft budget projecting its first surplus in decades

Portugal unveils draft budget projecting its first surplus in decades

Portugal’s government unveiled its draft 2020 budget on Tuesday, projecting the country’s first fiscal surplus in 45 years of democracy as solid growth and a promising gentle tax reduction for small firms and a strong one on bullfighting events.

“It is the first budget delivered with a surplus,” Portugal’s finance minister Mario Centeno told reporters. “Growing, consolidating public accounts, and reducing debt is very rare worldwide.”

The envisaged surplus of 0.2% of gross domestic product comes after a projected deficit of 0.1% for 2019.

The surplus will provide an extra push to alleviate Portugal’s debt burden. While it is among the highest in the euro zone, it is still expected to drop to 116.2% of the nation’s GDP from this year’s 118.9%.