State tax revenues up 16.7% to March, especially in the case of VAT, to 62,638 million euros
Public accounts continue to show improvement in government deficit data, whose imbalance amounted to 4,412 million in the first quarter of the year, which is 78.4% less than in the same period of the previous year when it was more than 16,000 million at the time. In this way, the government deficit falls to 0.34% of GDP (Gross Domestic Product), according to the latest data updated by the Ministry of Finance. In the case of state accounts (excluding the central administration) for the month of April, the deficit was 0.5% of GDP, compared to 1.68% in the same part of 2021. In this way it comes to 6,553 million, which represents a decrease of 67.6% compared to the 20,249 million 12 months earlier.
The favorable evolution of government accounts – in 2020, the year of the pandemic, the deficit rose to 11% due to spending to tackle the corona virus, and in 2021 it closed at 6.7% – is mainly explained by the performance of tax revenues. This is due to the increase in treasury collection in all types of taxes since the beginning of this exercise. For the division headed by María Jesús Montero, it is a “solid” result with non-financial income increasing by 16.7% and costs decreasing by 4%. “The evolution up to April shows that the state deficit continues the downward path that started in 2021 due to the economic reactivation and job creation due to the advance of vaccination,” the Treasury said.
VAT revenues increased by 19.4%, while current taxes on income and wealth increased by 18.6% as a result of personal income tax, which increased by 29.2%. The increase in VAT is explained both by economic activity and, in part, by rising prices, raising tax bases.
The central government accounted for most of it, at 3.525 million, 0.27% of GDP, and within that the government deficit was reduced to 5,143 million, which corresponds to 0.39% in terms of GDP. The region, for its part, registered a surplus of 220 million, which corresponds to 0.02% of GDP, compared to the deficit of 3.416 million a year earlier. The social security funds are in deficit of 1,107 million, 0.08% of GDP, 847.8% less year on year due to the increase in contributions.
Source: La Verdad
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