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Saturday, January 28, 2023

Government deficit falls to 1.5% of GDP by May and government deficit closes H1 at 1.8%


State taxes took in 96,952 million euros after growing by 20.2%


The deficit of all public administrations without financial aid amounted to 19,629 million euros until May, which means that 21,525 million are deducted from the figure registered last year, 52.3% less, making it 1.5% of GDP according to data from the Treasury goes down.

The government deficit up to June is 1.8% of GDP compared to 3.3% in the same period of 2021. In this way, the deficit is 23,487 million, a decrease of 41.3% compared to 40,031 million in the same period of the previous year.

This result is due to a solid 20.4% increase in non-financial revenues, according to the Treasury, compared to the development of expenditures, which are growing at a rate of 2%.

“The decline in the government deficit that started in 2021 continues as a result of economic reactivation and job creation,” said the ministry, headed by María Jesús Montero.


As for the government deficit up to May, the central government accounted for the largest part at 15,592 million, 1.19% of GDP, and within that, the government deficit was reduced to the figure of 17,385 million, which is 1.33% in terms of GDP . For their part, the central government organs record a surplus of 1,793 million up to May 2022 compared to a deficit of 895 million a year earlier.

For its part, the regional government recorded a deficit of 3,054 million euros up to May, equivalent to 0.23% of GDP, higher than the deficit of 2,302 million euros in the previous year. This result is due to a 3.1% increase in expenses while revenues are growing at a rate of 2.2%.

As for the social security funds, the data shows that by the fifth month of 2022, a deficit of 983 million was registered, down 70.5%, and it was 0.08% of GDP. This behavior is the result of practically stable revenues (the good behavior of contributions stands out with a growth of 5.0%) compared to a decrease in expenditure of 2.9%.


As for the government deficit data through June, the best result comes from a solid 20.4% increase in non-financial receipts, compared to the evolution of expenditures, which are growing at a rate of 2%.

In particular, non-financial resources amount to 113,836 million, which is 20.4% more than the same period in 2021, with taxes amounting to 96,952 million euros – 85.2% of the total resources – and compared to the same period in 2021 20.2% increase.

Production and import taxes increase by 18.6%. Specifically, VAT receipts increased by 22.8%. Current income and wealth taxes increased by 22.8%, driven by the 28.2% increase in personal income taxes. In turn, non-resident income tax increased by 77.3%. Corporate tax receipts increase by 21.9% when extraordinary income from the merger of two large companies collected in 2021 is subtracted.

On the other hand, property income increased by 17% compared to 2021, driven by a 45.8% increase in income from dividends and other property income to 1,991 million. This increase is partly due to the fact that in June 554 million was received from the State Lottery and Gaming Corporation (SELAE) corresponding to the interim dividend of profits for fiscal year 2022 without correspondence in 2021.

Second was Banco de España’s deposit on dividends at 860 million, up 3.6%. These increases were offset by lower interest income, down 20.3% to 842 million.


On the spending side, non-financial government jobs totaled 137,323 million, a figure that’s 2% higher than the first six months of 2021.

The item with the largest volume is transfers between public administrations, with a weight of 60% of the total non-financial uses. Specifically, they amounted to 82,432 million in the first six months of the year, an amount that includes the 3,086 million euros in SII VAT compensation paid to the Autonomous Communities in 2017.

On his side, employee compensation is growing by 2.6%. This column, which totals 10,139 million, includes this year’s pay rise of 2% compared to a pay rise of 0.9% in 2021.

Finally, gross fixed capital formation stands out, rising by 20.6% to 2,628 million in 2022, while investment subsidies and other capital transfers combined rose to 1,204 million.


Source europapress.es

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