Budget Outturn Summary Report Monthly edition Portuguese version published on the 25 th May Budget General Directorate

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2 Monthly edition Portuguese version published on the 25 th May 2018 Budget General Directorate Internet site:

3 1. Summary OVERALL BALANCE 1. Summary According to the 2018 April implementation data available, the General Government balance on a cash basis approach (that is, revenues minus payments) amounted to -2,022.3 million euros, which has underlying a deterioration of million euros, compared to the amount recorded in the same period of 2017 (-1,857.5 million euros). The primary surplus was 1,473.8 million euros, million euros higher than in Table 1 General Government consolidated accounts Period: January to April Cumulative YOY Change implementation Absolute Relative (%) March April March April Millions Current revenue , ,2 736,3 895,7 4,2 3,9 3,9 Tax , ,1 540,5 153,8 5,4 1,2 0,7 Social security contributions 6 170, ,1 212,7 289,9 4,5 4,7 1,2 Other current revenue 3 587, ,8 17,0 476,9 0,6 13,3 2,1 Consolidation differences 55,2 30,2-33,9-25, ,1 Capital revenue 528,9 506,0-102,3-22,9-22,5-4,3-0,1 Consolidation differences 13,3 19,2-38,7 5, ,0 Effective revenue , ,2 634,1 872,8 3,5 3,8 Contributio n (p.p.) Current expenditure , ,0 694, ,5 4,0 4,7 4,4 Compensation of employees 6 010, ,4-125,3-163,5-2,8-2,7-0,7 Purchase of goods and services 3 327, ,0 287,0 410,4 12,0 12,3 1,6 Interests and other charges 2 913, ,2 258,6 582,7 13,9 20,0 2,3 Current transfers , ,0 224,0 187,9 2,8 1,7 0,7 Subsidies 228,0 292,5 61,7 64,5 35,7 28,3 0,3 Other current expenditures 286,4 299,7 12,6 13,3 5,7 4,6 0,1 Consolidation differences 8,0 13,3-24,5 5, ,0 Capital expenditure 1 510, ,6-74,0-62,8-6,7-4,2-0,3 Investments 1 196, ,1-54,3-25,1-6,3-2,1-0,1 Capital transfers 257,7 268,6 11,7 10,9 5,8 4,2 0,0 Other capital expenditures 33,0 7,9-25,5-25,2-84,8-76,2-0,1 Consolidation differences 23,5 0,0-5,9-23, ,1 Effective expenditure , ,5 620, ,7 3,4 4,1 Overall balance , ,3 14,0-164,9 Primary expenditure , ,4 361,5 455,1 2,2 2,1 Current balance -876, ,8 42,2-204,9 Capital balance -981,5-941,5-28,2 40,0 Primary balance 1 056, ,8 272,6 417,8 Note: Cash basis amounts consolidated of flows among different subsectors; differences against the values published in 2017 are due to data updates. Source: Budget General Directorate and Social Security Financial Management Institute 1

4 1. Summary The evolution of the General Government balance was driven by a number of effects, both on the revenue side (+3.8%) and on the expenditure side (+4.1%). Regarding revenue, it highlights the Personal Income Tax reimbursements, with a strong contribution to the evolution of this tax (-8.5%) and the revenue from the Bank of Portugal s dividends. In which concerns expenditure, interest and other charges show a strong growth - associated with the payment of swap coupons to the bank institution Banco Santander Totta, S.A., under the agreement established between public transport corporations, the Portuguese Republic and this credit institution (which has no impact on the National Accounts approach) and interest on Treasury Bonds - as well as the acquisition of current goods and services, which reflects a significant amount of payments of National Health Service s arrears. As regards the revenue behavior, the observed increase (872.8 million euros compared to the same period of the previous year) mainly reflects the positive evolution of: i) Other current revenues (13.3%), which include the revenue from Bank of Portugal s dividends (414.9 million euros), which in 2017 were received in May; (ii) The social security contributions, which accelerated in April (+4.7%); and (iii) The tax revenue, which increased by 1.2%, despite the increase in the PIT reimbursements ( million euros) in April. The expenditure growth (by 1,037.7 million euros compared to the period until April 2017) was mainly due to the evolution of: i) Interest and other charges, with a contribution of 2.3 p.p., which was strongly influenced by the settlement of swap coupons by Metropolitano de Lisboa, E.P.E. 1 (269.5 million euros) and by Metro do Porto, S.A. 2 (36.3 million euros) to the bank institution Banco Santander Totta, S.A. (under the agreement established between public transport corporations, the Portuguese Republic and this credit institution regarding swap contracts) and by the higher interest associated with Treasury Bonds, due to the increase of the outstanding balance with payment of coupon in April; ii) Expenditure on the acquisition of current goods and services (contribution of 1.6 p.p.), influenced by the payment of overdue debts by entities of the National Health Service, highlighting the 4.5% growth of this NHS expenditure category, on the financial perspective; iii) Current transfers (contribution of 0.7 p.p.), in particular the financial contribution to the European Union budget ( million euros), the Social Benefit for Inclusion 3 (+73.3 million euros) and the compensation for the victims of the 2017 forest fires (31.7 million euros). In the opposite direction, the evolution of pensions and compensation of employees benefited from the end of the payment of the Christmas bonus by twelfths 4. In which concerns compensation of employees, it also highlights the fact that the unfreezing of promotions and progressions of careers in public sector, determined by the 2018 State Budget Act, has not yet been fully reflected in the budget implementation and the second phase of the unfreezing process will occur in September 5. The deterioration of the General Government s balance ( million euros), due to the unfavorable evolution of the Autonomous Services and Funds sub-sector (-363 million euros) and the Local Government 1 Metropolitano de Lisboa, S.A. is the Portuguese public corporation responsible for the management of Lisbon City's light rail network. 2 Metro do Porto, S.A., the Company for the Management of Oporto's Light Rail Network. 3 A social welfare allowance created in October 2017, aimed at protecting in the event of disability and of insufficient resour ces of persons with disabilities. 4 In 2017, as determined in the State Budget, one half of the Christmas bonus due to the public sector employees and pensioners was subject to the payment by twelfths, with the payment of the remaining 50% having occurred in November (or December, regarding the general Social Security scheme). In turn, in 2018, the whole of this benefit will be paid in November/December. 5 It should be noted that the payment of the unfrozen progressions and promotions is phased as follows: 25% from January 2018; 25% additional from September 2018; 25% additional from May 2019 and the remaining 25% from December

5 1. Summary (-85.2 million euro). In the opposite direction, it highlights the positive contribution from several sub-sectors, in particular from the State sub-sector (+29.3 million euros), Social Security (+174 million of euros) and Regional Government (+80.3 million euros). Table 2 General Government budgetary implementation by sub-sectors revenue, expenditure and balance Period: January to April Millions Overall balance Revenue Expenditure YOY Change Rate (%) Revenue Expenditure Central Government and Social Security , , , , , ,5 4,2 4,5 Central Government (CG) , , , , , ,4 3,0 4,2 State subsector , , , , , ,7 3,9 2,9 Autonomous Services and Funds 155,7-207, , , , ,7 3,8 8,0 of which: CG State Owned Enterprises -367, , , , , ,6 1,9 22,9 Social Security 1 074, , , , , ,8 3,0 1,1 Regional Government -43,8 36,5 793,2 822,2 837,0 785,7 3,7-6,1 Local Government 181,4 96, , , , ,5-0,9 3,6 General Government , , , , , ,5 3,8 4,1 Note: Cash basis amounts not consolidated of flows among different sub-sectors; differences against the values published in 2017 are due to data updates. Source: Budget General Directorate Central Government and Social Security balance (cash basis) until amounted to -2,155 million euros (-1,995.3 million in 2017), while the primary balance was +1,268.5 million euros ( million in 2017). Revenue s rate of growth was 4.2%, while expenditure increased 4.5%. On its turn, primary expenditure increased 2.2%. Regional and Local Government recorded a balance (cash basis) of million euros, that is -4.9 million euros in comparison with the previous year. Local Government showed a balance of 96.2 million euros and Regional Government of 36.5 million euros, million euros and million euros than until April 2017, respectively. General Government non-financial debt amounted to 2,106 million euros at the end of, 99 million euros lower than in the same period of the previous year. This evolution was due to the decrease in the amount recorded by the Local Government (-112 million euros) and by the Regional Government (-106 million euros), while this effect was partially offset by the increase registered by the Central Government (+120 million euros). Compared with the previous month, there was a reduction of 86 million euros, reflecting the behavior of Regional Government (-59 million euros), Central Government (-26 million euros) and by the Local Government (-2 million euros). 3

6 1. Summary Table 3 General Government Non-financial Liabilities - Stock in the end of the period Period: January to April Central Gov. Others Local Government - Total General Government Source: Budget General Directorate (DGO), Local Government Directorate (DGAL), Azores Autonomous Region Budget and Treasury Regional Directorate and Madeira Autonomous Region Budget and Treasury Regional Directorate Millions monthly YOY Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr variation variation Goods and Services Acquisition Capital Goods Acquisition Transfers inside GG Transfers outside GG Others Central Government - Total Goods and Services Acquisition Regional Gov. Capital Goods Acquisition Transfers inside GG Transfers outside GG Others Regional Government - Total Goods and Services Acquisition Local Gov. Nature of Debt Capital Goods Acquisition Transfers inside GG Transfers outside GG The stock of public entities arrears at the end of amounted to 917 million euros, representing a decrease of 70 million euros regarding April 2017 and of 48 million euros over March Table 4 Arrears (overdue for more than 90 days) - Stock in the end of the period (consolidated) Period: January to April Subsector Total Provisional data. In the case of non-reclassified public enterprises, and since that this information is not available, the stock is the same of the previous month Source: Compiled by Budget General Directorate (DGO) based on data collected by Local Government Directorate (DGAL), DGO, Azores Autonomous Region Budget and Treasury Regional Directorate and Madeira Autonomous Region Budget and Treasury Regional Directorate. Millions monthly YOY Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr variation variation General Government Central Government excl. Health Subsector Health Subsector National Health Service - SOE Hospitals Reclassified Public Enterprises Local Government Regional Government Other Entities Non-reclassified Public Enterprises The year-on-year reduction was attributable to the National Health Service s institutions belonging to the State-Owned Enterprises (SOE) sector (-48 million euros) and to the Local Government (-32 million euros). With regard to the monthly variation (-48 million euros), the decline was mainly due to the Health Sector and National Health Service s institutions belonging to the State-Owned Enterprises (SOE) sector. Note that the capital endowments made by the State in these institutions at the end of 2017 were used to pay arrears. 4

7 2. Central Government and Social Security 2. Central Government and Social Security OVERALL BALANCE Central Government and Social Security overall and primary balances implicit to the period until April 2018 implementation reached -2,155 and +1,268.5 million euros, respectively, which have implicit a deterioration of the overall balance ( million euros) and an improvement of the primary balance (in million euros) over the same period of the previous year. Table 5 - Central Government and Social Security consolidated account Period: January to April YOY cumulative change Revenue/expenditure/balance Cumulative Absolute Relative (%) implementation March April March April Millions YOY Change Rate Contrib. (p.p.) Current revenue , ,7 764,3 968,3 4,7 4,6 4,5 Tax , ,7 534,6 161,4 5,8 1,4 0,7 Direct taxes 4 322, ,8 87,8-326,1 2,6-7,5-1,5 Indirect taxes 7 580, ,9 446,9 487,5 7,6 6,4 2,3 Social security contributions 6 167, ,7 214,6 292,5 4,6 4,7 1,4 Current transfers 532,5 599,8 164,0 67,2 44,5 12,6 0,3 Other current revenue 2 499, ,9-67,9 474,3-3,4 19,0 2,2 Consolidation differences 41,7 14,6 Capital revenue 415,8 354,7-118,9-61,1-33,0-14,7-0,3 Sale of investment good 60,9 25,0-37,1-35,9-68,3-59,0-0,2 Capital transfers 335,5 303,3-51,3-32,3-20,6-9,6-0,1 Other capital revenue 18,8 14,5 1,7-4,3 8,9-22,7 0,0 Consolidation differences 0,5 12,0 Effective revenue , ,5 645,4 907,3 3,9 4,2 Memo Item: Tax and contributions revenue , ,4 749,2 453,9 5,4 2,5 2,1 Non tax revenue 3 489, ,0-103,9 453,4-3,7 13,0 2,1 Current expenditure , ,1 699, ,8 4,3 5,1 4,8 Employees 4 914, ,8-114,4-144,2-3,1-2,9-0,6 Purchase of goods and services 2 440, ,2 315,1 427,8 17,8 17,5 1,8 Interests and other charges 2 803, ,5 300,5 620,0 16,8 22,1 2,6 Current transfers , ,7 241,5 212,0 2,8 1,8 0,9 Subsidies 215,0 277,1 60,0 62,1 36,4 28,9 0,3 Other current expenditure 244,0 206,3-35,3-37,8-18,4-15,5-0,2 Consolidation differences 6,7 4,5 Capital expenditure 1 166, ,4-69,0-70,8-8,1-6,1-0,3 Investments 812,6 792,5-37,8-20,1-6,4-2,5-0,1 Capital transfers 303,5 301,3-3,1-2,2-1,4-0,7 0,0 Other capital expenditure 26,7 1,6-24,0-25,1-95,8-94,1-0,1 Consolidation differences 23,5 0,0 Effective Expenditure , ,5 630, ,0 3,7 4,5 Memo Item: Current and capital transfers , ,0 238,4 209,8 2,7 1,7 0,9 Other current and capital expenditure 270,7 207,9-59,3-62,8-27,4-23,2-0,3 Overall balance , ,0 15,2-159,7 Primary expenditure , ,9 329,7 447,0 2,1 2,2 1,9 Current balance , ,4 65,1-169,5 Capital balance -750,4-740,7-49,9 9,8 Primary balance 808, ,5 315,7 460,3 Source: Budget General Directorate and Social Security Financial Management Institute 5

8 Jan Feb March April May June July Aug Sept Oct Nov Dec million euros 2. Central Government and Social Security Chart 1 Central Government and Social Security balance evolution Source: Budget General Directorate and Social Security Financial Management Institute The unfavorable evolution of the overall balance was mainly due to the fact that the revenue growth (+4.2%) particularly regarding non-tax and non-contributory revenue (+13%), influenced by the different intra-annual profile of dividends delivered by the Bank of Portugal, and contributions to social security schemes (+4.7%) -, was lower than the expenditure s rate of change (+4.5%). The increase in expenditure was mainly driven by: i) The interest and other charges (+22.1%), in particular those relating to swap contracts, supported by Metropolitano de Lisboa, E.P.E. 6 and by Metro do Porto, S.A. 7, following an agreement reached with the Banco Santander Totta S.A. and those concerning the direct State debt; ii) The acquisition of current goods and services (+17.5%), mostly reflecting the regularization of nonfinancial liabilities by entities of the National Health Service, using the capital endowments made by the State in these institutions at the end of 2017; and iii) Transfers (+1.7%), namely those allocated to the European Union budget. It should be noted that primary expenditure increase was lower (+2.2%). EXPENDITURE The Central Government and Social Security expenditure grew 4.5% until and primary expenditure increased by 2.2%. The primary expenditure s evolution was mainly determined by the increase in the acquisition of goods and services - mainly due to the regularization of non-financial liabilities by the National Health Service and in transfers, with emphasis on the financial contribution to the European Union budget. In the opposite direction, it highlights the decrease in compensation of employees, influenced by the different payment profile 6 Metropolitano de Lisboa, S.A. is the Portuguese public corporation responsible for the management of Lisbon City's light rail network. 7 Metro do Porto, S.A., the Company for the Management of Oporto's Light Rail Network. 6

9 2. Central Government and Social Security of the Christmas bonus compared to 2017 and by the fact that the unfreezing of promotions and progressions of careers in public sector, determined by the 2018 State Budget Act, has not yet been fully reflected. The compensation of employees decreased 2.9% (-3.1% until March), partially influenced by the different payment profile of the Christmas bonus 8 and by the fact that the unfreezing of promotions and progressions of careers in public sector, determined by the 2018 State Budget Act, has not yet been fully reflected. It should be noted that the payment of the unfrozen progressions and promotions is phased as follows: 25% from January 2018; 25% additional from September 2018; 25% additional from May 2019 and the remaining 25% from December In the opposite direction, reference to the increase in the overtime spending in the health sector, as well as the effect of the payment in 2018 of contributions to social security schemes relating to 2017, by the basic and secondary education establishments. The purchase of goods and services expenditure s change rate (+17.5%, in line with the 17.8% increase until March) was influenced by the regularization of non-financial liabilities by entities of the National Health Service, using the capital endowments made by the State in these institutions at the end of In addition, as a contribution to this expenditure category s growth, it highlights the increase in: i) The expenditure of Rádio e Televisão de Portugal, S.A. 9, associated to the broadcasting rights of several sport events; and ii) The maintenance actions on railway and road infrastructures, by Infraestruturas de Portugal, S.A. 10. In the opposite direction, it was relevant the lower level of reimbursements by the ADSE 11. Interest and other charges expenditure increased 22.1% (+16.8% until March), mainly due to the behavior of the direct State debt interest charges (+11.7%) and to the evolution of interest and financial charges paid by the public entities reclassified to the Central Government since 2012 (+212.2%). In which concerns the former, the growth was due, mainly, to the increase in treasury bonds interest, as a consequence of a rise in the outstanding balance of treasury bonds with coupon payment in April and, to a lesser extent, to the evolution of "Other instruments", primarily owing to the payment of interest associated with treasury bonds of variable income issued in the second and third quarters of 2017 and to the reduction of the net interest repayment of swaps. Regarding the latter, it was mainly at stake the payments by Metropolitano de Lisboa, S.A. 12 and, even if to a lesser degree, by Metro do Porto, S.A. 13, to the bank institution Banco Santander Totta, S.A. under the 8 The State Budget Law for 2018 no longer foresees the distribution of the payment of the Christmas bonus in the course of the year, recovering the full payment regime in the month of November. 9 RTP, the Portuguese public broadcaster. 10 Public corporation responsible for constructing, operating, rehabilitating, extending and modernizing the road and rail netwo rks. 11 ADSE is the public health subsystem of civil servants and pensioners, other than military and security forces (which have a special health subsystem). 12 Metropolitano de Lisboa, S.A. is the Portuguese public corporation responsible for the management of Lisbon City's light rail network. 13 Metro do Porto, S.A. is the company for the management of Oporto's light rail network. 7

10 2. Central Government and Social Security agreement established between public transport corporations, the Portuguese Republic and this credit institution regarding swap contracts. Transfers change rate was +1.7% (+2.7% until March), to which contributed most significantly i) The increase of Portugal s financial contribution to the European Union budget (+19%), by way of the twelfths anticipation 14 ; ii) The impact of expenditure associated with the Social Benefit for Inclusion, a social welfare allowance created in October 2017, aimed at protecting in the event of disability and of insufficient resources of persons with disabilities (73.3 million euros until April); and iii) The payment of compensations for the death of the forest fires victims in In turn, the main effects with downward impact on expenditure were as follows: i) The reduction of pension expenditure (-1.2% regarding the general social security scheme and -2.1% in which concerns the convergent social protection scheme for pensions, managed by Caixa Geral de Aposentações 15 ), which was justified by the fact that, on the one hand, half of the Christmas bonus was paid by twelfths in 2017 and, on the other hand, part of the invalidity pensions is now paid by means of the Social Benefit for Inclusion, despite the impact of the attribution of an extraordinary update in August of that year 16 ; and iii) The reduction in unemployment benefits expenditure (-6.7%), reflecting the impact of the improvement of the labor market situation and the decrease in the unemployment rate. The rise in subsidy expenditure (+28.9%, which compares with +36.4% until March) was attributable to: i) The increase in Social Security subsidy payments, related to vocational training and social action ; and ii) The payment of subsidies by the Parliament related to the campaign for the 2017 Local Government elections. The slowdown of this expenditure category change rate regarding the period until March (+36.4%) was due to a sharper decrease in the number of active employment and vocational training measures supported by the Employment and Vocational Training Institute. Investment expenditure decreased 2.5%, as a result of various base effects in 2017, namely: i) The expenditure associated with various projects of modernization and maintenance of equipment and with oceanic patrol vessels, by the Navy; ii) The payment of compensation to Portucel Recicla by EDIA - Empresa de Desenvolvimento e Infraestruturas do Alqueva, S.A. 17, in the context of legal proceedings between the parties regarding an expropriation; and iii) The lower volume of payments related to road concessions and sub- 14 Under the existing Community legislation (Regulation (EU, Euratom) N.o 609/2014 of 29 May), the European Commission may require to the Member States, in the first quarter of the each year, to advance up to two-twelfths of their contribution to the EU budget to meet specific needs relating to the payment of expenditure under the European Agricultural Guarantee Fund (EAGF) and in the light of the cash position of the Union. 15 Caixa Geral de Aposentações (CGA) is the public body that administrates the Portuguese civil servants pension scheme. However, from 2006 onwards, the new civil servants became part of the general social security scheme, so that the pension system managed by CGA has been closed since that year. 16 This extraordinary increase covered pensions equal to or less than 1.5 times the value of the monthly Social Support Indexer ( ) and was 10 per month, in cases where they have not been subject to any rise between 2011 and 2015 and 6 per month in all other cases. 17 EDIA is the company for the development and infrastructures of Alqueva's Dam. 8

11 2. Central Government and Social Security REVENUE concessions, highlighting the Algarve Litoral 18 sub-concession, under the responsibility of Infraestruturas de Portugal, S.A. 19. Compared to the previous month (-6.4%), the lower year-on-year decrease was due to several effects, primarily the different profile of charges associated with the road concessions and subconcessions and the evolution of spending on military investment. Other expenditure decreased 23.2% (+27.4% until March), this variation being explained by the reduction of charges with rents paid by the entities that already benefited from the modernization program of public schools, under the program contract with Parque Escolar, E.P.E. 20. Central Government and Social Security revenue increased by 4.2% until, with emphasis on the favourable behaviour of the non-tax and non-contributory revenue (2.1 p.p., corresponding to +13%), the contributory revenue (+1.4 p.p., corresponding to +4.7%) and the tax revenue (+0.7 p.p., corresponding to +1.4%). Tax revenue evolution (+1.4%) was the result of the increase in indirect taxes (+6.4%), despite the contraction of direct taxes (-7.5%). Direct taxes reduction was justified by the Personal Income Tax (PIT) revenue (-8.5%), which reflected the different annual profile of reimbursements to taxpayers ( million euros). On its turn, the Corporation Income Tax (CIT) revenue increased 4.6%. The increase in indirect taxes revenue was due to the behavior of the Value-Added Tax (+6.5%), the Tobacco Tax (+21.4%) and the Tax on oil and energy products (+3.4%). The Social Security systems contributions change rate (+4.7%) was due to the increase in contributions received by the Social Security (+6.7%), mainly reflecting the improvement in the macroeconomic scenario growth of GDP and of the employment level -, the greater efficiency in combating fraud, the increased efficiency in the control of employers remuneration statements and the rise of the monthly minimum guaranteed remuneration. 18 In the district of Faro (south of Portugal). 19 Public corporation responsible for constructing, operating, rehabilitating, extending and modernizing the road and rail networks. 20 Parque Escolar is the Agency for the Public Schools' Modernization Program. 9

12 2. Central Government and Social Security On its turn, contributions received by the CGA 21 registered a decrease (-3.4%), influenced by: i) The fact that the legal period for the delivery of contributions by public employers runs until the 15 th of the month following the month to which they concern; ii) The change in the form of payment of the Christmas bonus 22 ; and iii) The reduction of the subscribers number (for retirement, death or other reasons). The non-tax and non-contributory revenue increased 13%. This evolution was driven by the growth of property income (+115.8%) and fees, fines and other penalties (+4.9%). Regarding the former, the increase was strongly influenced by the fact that the Bank of Portugal delivered dividends to the State amounting to million euros in April of this year, while, in 2017, its dividends (278.5 million euros) were delivered in May. On its turn, the evolution of fines, fees and other penalties mainly reflected the reclassification of the levy on insurance premiums (49 million euros) by INEM - Instituto Nacional de Emergência Médica, I.P , aiming at the standardization of accounting (in 2017, this amount was accounted for as indirect taxes). 21 Caixa Geral de Aposentações (CGA) is the public body that administrates the Portuguese civil servants pension scheme. However, from 2006 onwards, the new civil servants became part of the general social security scheme, so that the pension system managed by CGA has been closed since that year. 22 Which, in 2017, by virtue of the law, was paid by 50% in November and the remaining 50% in twelfths throughout the year. 23 The National Institute of Medical Emergencies. 24 INEM is a public institute, to which is attributed all the emergency activity, namely the pre-hospital emergency system, transportation, hospital reception, among others. The INEM rate is levied on life, health, personal injury and car insurance premiums and represents almost the entire INEM budget. 10