Income from personal income tax falls by almost 7% and income from VAT is reduced by 0.8%
The State deficit stood at 37,682 million euros up to the month of July, which represents an 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 the 1.81% existing in July 2022.
As explained by the Ministry of Finance, the increase in the State deficit in July to 2.68% of GDP –which represents an increase of 0.87 percentage points compared to the same period of the previous year– is due to the impact of the Definitive settlements of the 2021 financing system, amounting 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 would be 5.9% lower than in the same period of 2022, according 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 the balance of aid to financial institutions is included, the deficit fell 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 recorded a deficit of 12,110 million, which is equivalent to 0.86% of GDP, compared to 0.65% reached 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 the 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% in 2022.
Returning to the State deficit, its behavior until July is due to the fact that non-financial resources – income – stand at 142,890 million, which implies 3.6% less compared to the same period in 2022. Within them, the taxes reached 116,288 million, 81.4% of total resources, after growing a slight 0.9% compared to July 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 income of the new Special Tax on Non-Reusable Plastic Containers (345 million), the temporary energy tax (753 million) and the temporary tax on credit entities and establishments stands out. financial credit (587 million) with a combined amount of 1,685 million.
INCOME FROM COMPANIES GROWS ALMOST 14%
For their part, current taxes on income and wealth reached 47,028 million, a figure 0.4% higher than that of the first seven months of 2022, due to the fact that income from Corporation 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 Non-Resident Income Tax income with 2,128 million increased by 28.8%. Likewise, taxes on capital reached 133 million euros and income from social contributions decreased by 2.2%.
EXPENSES INCREASE
In the case of expenses, until July, non-financial jobs in the State stood at 180,572 million, a figure 4.8% higher than that registered in the first seven months of 2022.
The largest volume item is transfers between public administrations, with a weight of 64.2% of the 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 destined for autonomous communities and local corporations to compensate for the negative overall balance of the liquidation of 2020.
In addition, the compensation of employees grew by 3.7%. This heading, which stood at 12,080 million, is affected by the 2.5% increase in public employment salaries.
