HE open all public administrations -except local companies- 29,930 million euros in the first eight months of the year, 3.9% more compared to the same period in 2022 due to the increase in expenses.
Despite this, the economy was allowed to grow reduce the budget deficit to GDP ratio by almost a tenthUp to 2.05% of GDP, according to budget implementation data published this Monday by the Ministry of Finance. In the first eight months of the year Public expenditures increased by 25 billion 441 million Income – with the impact of social benefits, intermediate consumption, employee wages and debt interest – reached only 24,314 million – thanks above all to more tax collections.
As usual, Most of the budget deficit is concentrated in the central governmentAt 32,845 million, 36.2% more and 2.25% of GDP due to the impact of the final liquidation of the regional financing system in 2021 and, to a lesser extent, high spending on pensions.
The liquidation of the system also affected the accounts of the regional administration, albeit in the opposite direction, which allowed them to make a registry. 496 million more (0.03% of GDP), compared to the 2022 deficit.
Only five autonomous communities recorded budget deficitsAt the end of August: Castilla-La Mancha, Catalonia, Madrid, Murcia and Valencia.
Social Security also turned the deficit into a surplus, in this case 2 billion 419 million (0.17% of GDP), due to reduced Covid-related spending and improvement in social contributions. Government deficit increased by 39.8% in September
The Treasury also made a prepayment budget application data The state had a deficit of 26 billion 22 million euros, or 39.8% and 1.78% of GDP, until September, a nine-month period. The Treasury explains that behind this recovery is the accounting impact of the final adjustment of regional and local financing systems for 2021, which was carried out this year and created a negative impact for the State of 11,798 million people; this contrasts with the positive adjustment of the year. old.
This factor affects both expenses and income. decreased by 0.6% to 193.796 milliondespite the fact that tax collections increased by 3.1% to 161,111 million in that period.
taxes
Personal income tax was collected 3.5 percent less due to the effect of regional liquidation, and VAT was collected 1.2 percent less due to discounts on food and energy. corporate tax increased to 11.1% More benefits for both groups and more, thanks to the new system for calculating the tax base.
There are also 3.528 million new items in the collection. Taxes on banking, energy companies and large fortunes and 364 million from a new tax on non-reusable plastic containers.
Government expenditures amounted to 219 billion 818 million euros between January and August; This increased by 2.9%, largely due to the impact of regional and local agreements, which increased the resources allocated to transfers by 6.7%. Intermediate consumption expenditures also increased (14.1%, partly due to election costs), employee wages (3.7% due to salary increases) and debt interest (3.4%).