In a statement that precedes the release by the Budget Directorate of a full summary of budgetary execution for the period, the ministry said that the reduction was due to growth in revenues of 4.3% and “spending restraint”, with that side of the accounts growing by just 0.8%.

The ministry said that "the development of the deficit over the year guarantees, for the second consecutive year, the observance of the budgetary objectives established in the State Budget."

It hailed what it called “rigorous budgetary execution” and the “positive development of revenue” as making it possible to reduce public indebtedness as a percentage of gross domestic product.

The primary budget deficit, which excludes debt servicing costs, was €5.800 billion, or €2.281 billion less than a year earlier.

The improvement in Portugal's public finances in the course of 2017 saw it exit European Union excessive deficit procedures, which had entailed extra scrutiny from EU officials. The government has said it expects the deficit this year to be well under the 1.4% of GDP foreeen in the 2017 state budget.