All deficit recorded by public administrations, excluding domestic companies, fell by 70.3 percent in the first four months of the year compared with the same period a year earlier. The deficit reached up to €7,884 million, which is 0.60 percent of GDP, amid stronger tax collection and controlled spending.
Data released on Thursday by the Treasury show a notable increase in revenue from major taxes, helping push the state budget execution to €17,837 million by May, equivalent to 1.36 percent of GDP, while the period saw the deficit cut in half.
The Treasury’s statement notes that the deficit downward trend that began in 2021 continues. As a result of economic recovery and job creation, revenues rose by 19.2 percent through May, while expenditures grew only 3.3 percent. In total, the State recorded €83,233 million in income, with 84.6 percent originating from taxes.
Value added tax collections rose 22.8 percent and personal income tax by 32.5 percent. Non-residents’ incomes increased by 83.6 percent, and corporate tax grew by 20.7 percent. Expenditures were €101,070 million, of which 57.7 percent consisted of transfers between public administrations totaling €58,351 million. This includes compensation to autonomous communities for the VAT information system implementation that began in 2017, which contributed to revenue reductions. Civil servant salaries totaled €7,535 million for 2022, up 3 percent with a 2 percent pay increase.
Debt interest reached €11,290 million, reflecting an 18.3 percent growth.
Reducing the deficit in Autonomous Communities
Autonomous communities closed April with a deficit of €1,906 million, nearly half the level recorded in the same period of 2021, a figure equivalent to 0.15 percent of GDP as expenses grew more slowly than income.
Tax revenues reached €2,347 million, up 10.8 percent, including a 34.1 percent increase from property transfer tax and documented legal proceedings. Income and wealth taxes rose by 6.6 percent to €16,996 million. Current transfers from the government stood at €29,930 million, up 2.3 percent, of which €3,086 million accounted for compensation related to the VAT system adjustment for the application of the LII-VAT measure.
Nine communities ended the period with a deficit, the largest being the Valencia Community (€1,072 million), followed by Catalonia (€901 million), the Balearic Islands (€273 million), Murcia (€224 million), the Canary Islands (€170 million), Castilla-La Mancha (€165 million), Extremadura (€48 million), Navarra (€96 million), and Madrid (€9 million). The rest closed April with surpluses, led by the Basque Country (€373 million), Castilla y León (€164 million), and Asturias (€151 million).
Social Security Funds showed a deficit of €1,523 million, equivalent to 0.12 percent of GDP, a decline of 34 percent from the previous year due to reduced spending. The first application data for 2022 from local companies, which registered a deficit of €183 million, equivalent to 0.01 percent of GDP in the first quarter, were released today. With these figures, the public deficit fell by 77.1 percent in the first quarter to 0.36 percent of GDP.