The public deficit of the State amounted until May of this year to 30,628 million euros, or what is the same, 2.53% of the national GDP, according to data on budget execution made public by the Ministry of Finance this Wednesday. The figure is 6.3% lower than that of the same period in 2020, when the imbalance reached 32,675 million (2.9% of GDP), but it is still far from pre-pandemic levels. Despite the small relief registered in the public accounts in these first five months, this year’s deficit is still double that of 2019, which at this point amounted to 15,556 million euros (1.25% of GDP).
The improvement in the accounting situation compared to last year is explained by an increase in tax collection, a rise that has driven the State’s non-financial income 11.1% above the same period in 2020 to reach 69,464 million euros. Tax revenue grew 16.8%, which meant 8,400 million more for the State coffers.
The tributes that best recovered their collection were the income and wealth taxes, an item that grew by 31.8% compared to the equivalent period of 2020 and that contributed 4,678 million more than last year. The partial recovery in consumption also shot up VAT collection, which grew 13.5% compared to the first pandemic May (3,440 million euros more) and is the second tax that contributes the most to state coffers.
The collection from sale of goods and services It was the item of non-financial income that increased the most in relation to 2020, a rise of 34.4% that left 180 million euros more in collection than the previous year. On the contrary, income from social contributions (0.4%, 11 million less), property income (7.5%, 174 million less) and income from other non-financial resources (-20 , 8%, 1,466 million less).
For its part, expenses increased by 5.1% to reach 100,092 million euros, mostly due to an increase in transfers between public administrations – which increased by 10.5% – and those destined to Social Security funds – which grew by 32%, that is to say, 3,736 million more.
The data published by the Treasury also includes information on the spending dedicated to fighting the virus. According to the figures the State left 5,074 million euros in expenses related to the pandemic until May, of which 94% were transfers to the autonomous communities and the remaining 6% to the purchase of vaccines, an item to which 308 million have been allocated.
The deficit of public administrations falls by 23.4%
In addition to the state figures until May, the Treasury has also published the balance of accounts of the public administrations until April, which includes information on the deficit of the autonomous communities but not of the local corporations. According to these data, the joint deficit of the State, Social Security and the autonomous communities amounted to 1.8% of GDP (21,910 million euros), which represents a drop of 23.4% compared to last year’s figure.
The bulk of the deficit corresponds to the State itself, which has a budget imbalance of 16,058 million, or what is the same, a deficit of 1.3% on GDP, four tenths less than last year.
Conversely, the autonomous communities increased their deficit set from 0.05% to 0.26% of GDP, with a budgetary imbalance that amounted to 3,161 million euros until April.
However, not all the autonomies presented a negative budget balance. Up to five communities had a surplus in their accountsThese are Asturias (127 million), Navarra (75 million), Castilla y León (74 million), the Basque Country (57 million) and Extremadura (12 million). On the other side of the coin, the territories with the highest deficit were Catalonia (916 million), Andalusia (862 million) and the Canary Islands (672 million). The Community of Madrid was the only territory with a neutral budget balance after having reduced its deficit 1,782 million compared to the previous year.
This is how communities spent to stop the pandemic
Of all the expenditure that the regional administrations had made until April of this year, 2,509 million were allocated to defray social and health costs derived from the pandemic. In this section, Andalusia (424 million), Catalonia (419), Valencian Community (335) and Madrid (312) concentrated 60% of autonomous spending, a figure that, however, does not reflect how the governments have squeezed their resources.
The expenditure of each autonomy in relation to its GDP gives a more proportionate measure of economic effort. The communities that invested the most in relation to the size of their economy were Castilla-La Mancha (0.35%), Murcia (0.32%) and the Valencian Community (0.3%). On the other side of the spectrum, the Community of Madrid (0.13%), Navarra (0.16%) and the Canary Islands (0.16%) were the ones with the least budget.