2023-07-31 14:32:56
He public deficit closed May in 17,414 million eurosa number that is equivalent to 1.24% of GDP and that it is 17.8% lower than that of the first five months of 2022, according to data distributed this Monday by the Ministry of Finance.
The budgetary execution data of the public administrations as a whole -except for local corporations- up to May show a correction that is produced thanks to the strong increase in revenue of 9.7%and despite the fact that expenses grew by 7%.
The central administration accumulated a deficit of 10,373 million (0.74% of GDP) at the end of May, 40.3% less than in 2022 thanks to tax collection, which has been boosted by the implementation of new taxes on plastic containers, banks and energy.
On the other hand, the autonomous communities doubled their deficit, reaching 6,193 million (0.44% of GDP), due to the accounting effect derived from the transfer of more than 3,000 million made by the State in 2022 to compensate the regions for the change of the VAT system in 2017.
At the end of May, only Asturias and the Basque Country maintained a surplus -of 0.14% and 0.05% of their GDPrespectively-, while the largest deficit was concentrated in the Balearic Islands (1.52% of its GDP) and Valencia (1.32%).
With regard to Social Security funds, they reduced the deficit by 25.5%, to place it at 848 million (0.06% of GDP) thanks to the increase in income from social contributions.
The state deficit is reduced by 6.6% in the first semester
The Treasury has also advanced the State budget execution data until June, a period in which the deficit of this subsector stood at 24,090 million euros, 6.6% less than in the first half of 2022 and equivalent to 1, 71% of GDP.
This correction has occurred thanks to the fact that the increase in revenue -122,192 million, 7.9% more- was more intense than the cost -146,282 million, 5.2% more-.
The revenue growth was due to the good progress of tax collection -101,692 million, 5.5% more-, driven by the new taxes on single-use plastics, banking and energy (which contribute 1,685 million) and the modification of the tax consolidation system in corporate tax ( which adds up to 232 million).
This factor, together with the increase in business profits, boosted corporate tax collection by 14.4%, while personal income tax revenues grew by 6.1% and VAT revenues remained stable.
On the expense side, sales increased by 9.5%. transfers between public administrationsdue both to the greater resources delivered to Social Security and to the allocation to the autonomous communities to offset the negative balance of 2020.
There was also an increase in spending on intermediate consumption (by 16%, mainly due to the 425 million euros from the elections and political parties program), interest (1.5%) and wages (3.6%).
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