Antônio Cotrim / LUSA
The Minister of State and Finance, Joaquim Miranda Sarmento
The increase in the State Surplus in January is justified by a growth in revenue (6.1%) greater than that in expenditure (5%), due to a positive evolution in contributory and tax revenue.
The State registered a surplus of 1,824.3 million of euros in January, with a improvement of 188.4 million of euros, according to the budget execution summary released today by the Budget Entity (EO).
“Public Administrations (PA) presented, in January 2026, a surplus of 1,824.3 million euros, which represents an increase of 188.4 million euros compared to the same period last year (an increase of 11.5%)”, the document reads.
This result was justified by a revenue growth (6.1%) higher than expenditure (5%). In revenue, the evolution of contributory income (8.3%) and non-tax and non-contributory (11.8%), supplemented by tax revenue (2.7%). The growth of tax revenue “reflects the implementation of VAT (12%), mitigated by the drop in IRC (-46.8%)”, explains the EO.
In terms of expenses, what stands out is the growth in transfer expenses (7.4%), in personnel expenses (5.5%) and in investment (25,3%).
The rise in transfers is related to the pension chargestaking into account that the annual update came into force in January, and personnel expenses also had impact of salary update and the rise of minimum wage.
In 2025, theworker salary updates in public functions were applied, in a generalized way, only from February.
O growth in investment is related to financing from the Recovery and Resilience Plan, namely in housing and education.
It is also worth noting the interest expense and net debt charges direct from the State, which in January fell 7.2%“mainly due to a reduction in interest on public debt instruments, both short and medium and long term (CEDIC and CEDIM, respectively), which essentially reflect the decrease in interest rates paid on the remuneration of these instruments”.
“Also contributing to this decrease was the reduction observed in interest rates associated with Savings and Treasury Certificates, which essentially reflects the fall in the indexes of remuneration rates applicable to these securities”, indicates the EO.
Pension surplus grows
Social Security registered a surplus of 778.2 million euros in January, above 722.5 million of euros calculated in the same period of the previous year, according to the budget execution summary released today by the EO.
In the first month of the year, the effective collection of Social Security was at 3,921.9 million euroswhen in January 2025 it was R$3,740.4 million.
In turn, effective expenditure amounted to 3,143.7 million of euros in January, higher than the 3,017.9 million euros in the same period last year.
In the period under analysis, items such as current subsidies: operational programs (174.4%), informal caregiver support allowance (21.6%) and parenting benefits (13.7%).
In the opposite direction the beneficiaries of ex-combatants appear (-39.5%), the complement to extraordinary support for children and young people (-59.7%) and exceptional and temporary measures in relation to covid-19 (-26.8%).
Late payments recede
Late payments from public entities stood at 333.9 million of euros in January, a decrease of 3.7 million of euros compared to the same period last year, but an increase compared to December. Compared to the previous month, there was a increase of 0.7 million euros.
“At the end of January, late payments from public entities totaled 333.9 million euros, which represents a decrease of 3.7 million euros compared to the same period of the previous year”, according to the budget execution summary.
According to the document released today by the Budgetary Entity, formerly the General Directorate of the Budget (DGO), the annual evolution is justified by the decrease recorded by the Regional Administration (39.3 million euros) and in Local Administration (-7 million euros).
On the other hand, there was a increase in healthcare (31.7 million euros) and in Reclassified Public Entities (9.8 million euros).
With regard to the monthly variation, the evolution “is justified by the increase in Regional Administration (5.9 million euros) and in health sector entities (1.4 million euros), mitigated by the decrease in Local Administration (-6.2 million euros)”.
