Official data indicate that the Portuguese government budget deficit fell to 0.5 percent of Gross Domestic Product (GDP) last year, the least since 1974, Xinhua reports.

The Chinese government-run news agency cites figures given by the Portuguese National Statistics Institute.

The report quotes the institute as saying the improvement in the deficit was due mainly to an increase in current revenue, especially in the form of tax receipts and social security contributions, which reflected greater economic activity and employment.

It quotes Portuguese Prime Minister António Costa as saying: “This is not the result of spending cuts or raised taxes, but of economic growth.”

It says Portuguese Finance Minister Mário Centeno attributes the drop in the budget deficit to economic policy, and quotes him as remarking: “Portugal has won in its bid for credibility.”

The government forecasts that its budget deficit this year will be 0.2 percent of GDP, Xinhua says.