The state continues to increase its revenues and in October it took 26% more from taxes, leaving the deficit at 1.37%, almost 70% lower than last year
Until September, the government deficit amounted to 1.55% of GDP, or 20,272 million euros. This figure, excluding local businesses, represents a decrease of 64% compared to the deficit recorded in the same month of the previous year, when it reached 4.7%.
According to data published by the Ministry of Finance on Wednesday, if the balance of aid to financial institutions (674 million) is excluded, the government deficit is 1.6% of GDP. On the part of the Central Administration, the deficit is 14,180 million, 1.08% of GDP.
On the part of the Autonomous Communities, they registered a deficit of 5.879 million in September, equivalent to 0.45% of GDP, compared to the 0.69% surplus achieved in September 2021 due to an increase in the expenditure by 8.6% Indeed, the liquidation of the financing system of 2020 had a negative result of 3,200 million, while that of 2019 had a positive result of almost 9,000. Therefore, the State will transfer an extraordinary financial cover of 4,400 million.
Revenues fell slightly by 0.5% despite taxes rising by 4.2%, 2,300 million more, mainly on manufacturing and imports. The decrease is partly caused by the result of the liquidation of the financing system. On the other hand, the income from taxes on income and wealth reached a total of 40,568 million.
As for the state deficit alone, in this case until October, it amounted to 18,016 million euros, representing a decrease of 69.7% compared to the same period of the previous year and equal to 1.37% of GDP , compared to the existing 4.93% in October 2021.
This result is due to an increase in non-financial income of 25.9%, compared to the behavior of expenditure, which is growing by 1.8%. Taxes amount to 181,111 million, 81.5% of total resources, growing by 21.6% compared to the same month in 2021.
Taxes on production and imports rise by 13.4%. In concrete terms, VAT revenue rose by 18%. Current taxes on income and wealth are rising by 32.5% thanks to personal income tax, which is rising by 38%. For its part, income tax for non-residents increased by 60.3% due to the increase in dividends. Corporate income tax revenue increased by 35.5%.
From the Ministry of Finance, they rate the data positively as representing the “continuation of the path of decline in the state deficit that started in 2021 due to the economic recovery and job creation”.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
