The 5.4 percent increase in tax revenue in these 11 months of 2018, above the growth in expenditure (3.3 percent) did not prevent a public deficit - currently standing at €624 million but it did contribute to improving it by €1.4 billion compared to the same period last year.

According to the directorate-general for the budget, the increase in tax revenue is due to the behaviour of Value Added Tax (VAT), personal income tax and corporate income tax.

Portugal's prime minister Antonio Costa has reversed state salary cuts and raised indirect taxes.

The country's GDP grew 2.7 percent in 2017 and the minority Socialist government has claimed the country is heading towards improved tax performance.