Portugal expects to post a budget deficit of 0.4% of gross domestic product this year, the National Statistics Institute (INE) said on Friday, leaving the official government forecast unchanged as it also revised last year's deficit lower to 0.3%.

The INE's update is part of the country's excessive deficit procedure reported to Brussels.

It also said that Portugal posted a surplus 1.1% of GDP in the first half after a year-ago deficit. (Reporting by Sergio Goncalves,editing by Andrei Khalip)