The State deficit rises to 2.68% of GDP until July and the public deficit falls to 2.14% in the first half

2023-09-11 16:42:18

The State deficit stood at 37,682 million euros until the month of July, which represents a increase of 56.8% compared to the same period of the previous year (24,027 million) and is equivalent to 2.68% of GDP, compared to 1.81% existing in July 2022.

As explained by Treasurythe increase in the State deficit in July to 2.68% of GDP – which represents a increase of 0.87 percentage points compared to the same period of the previous year– is due to the impact of the final settlements of the 2021 financing system, which amount to 11,798 million in favor of the autonomous communities and local entities, compared to last year, which were 6,106 million in favor of the State.

So, if the result of the aforementioned detailed final settlements is deducted from the deficit of both periods, taking into account the effect generated by the manner of recording personal income tax in national accounting, as well as the expense items related to the coverage of negative balances , the State deficit in the seventh month of the year It would be 5.9% lower than the same period in 2022according to Treasury calculations.

Regarding the joint deficit of the Central Administration, Social Security and the autonomous communities, excluding financial aid, it stood at 30,186 million euros up to June, which represents a decrease of 5.1% compared to the previous year and is equivalent to 2.14% of GDP – compared to 2.40% in the same period of 2022 -.

If you include the balance of aid to financial institutionsthe deficit was reduced to 2.17% of GDP, according to data provided this Monday by the Ministry of Finance and Public Function.

Specifically, the deficit of the Central Administration stands at 21,203 million at the end of June 2023, 1.51% of GDP, compared to 1.82 last year, while the autonomous communities registered a deficit of 12,110 million, which is equivalent to 0.86% of GDP, compared to the 0.65% achieved in the same period of the previous year.

Finally, the Social Security Funds until June 2023 register a surplus of 3,127 million, an increase compared to 971 million last year. In terms of GDP, the surplus of the Social Security Funds stands at 0.22% of GDP, higher than the 0.07% of 2022.

State income from taxes grows 0.9%

Returning to the State deficit, its behavior until July is due to the fact that the non-financial resources –income– They stand at 142,890 millionwhich implies 3.6% less compared to the same period in 2022. Within them, taxes reached 116,288 million, 81.4% of total resources, after growing a slight 0.9% compared to July of 2022.

Taxes on production and imports increased by 1.4% to reach 69,127 million, of which 52,080 million correspond to VAT revenue, a figure 0.8% lower than that of 2022.

Within non-financial resources, as tax news for 2023, the entry of the new Special Tax on Non-Reusable Plastic Packaging (345 million), the temporary energy lien (753 million) and the temporary lien on credit institutions and financial credit institutions (587 million) for a combined amount of 1,685 million.

Company income grows almost 14%

For their part, current taxes on income and wealth reached 47,028 million, This figure is 0.4% higher than that of the first seven months of 2022, due to the fact that income from Corporate Tax increased by 13.3%, up to 12,422 million, derived from the increase in collection of the first installment payment.

For its part, Personal income tax reached 31,649 million, 6.8% less, while income from Non-Resident Income Tax with 2,128 million rose 28.8%. Likewise, taxes on capital reached 133 million euros and income from social security contributions fell by 2.2%.

Expenses increase

In the case of expenses, until July, Non-financial jobs in the State have stood at 180,572 milliona figure 4.8% higher than that registered in the first seven months of 2022.

The item with the largest volume is transfers between public administrations, with a weight of 64.2% on total non-financial jobs. Specifically, in the first seven months of the year, they amounted to 115,842 million, 8% more than the previous year, mainly due to the additional provision of 1,666 million allocated to autonomous communities and local corporations to offset the global negative balance of the liquidation of 2020.

Besides, the remuneration of employees grew by 3.7%. This item, which stood at 12,080 million, is affected by the 2.5% rise in public employment remuneration.