The State recorded a budget surplus on the government accounts of 6,215 million euros until October, an improvement of 3,494 million euros compared to the same period last year, the Ministry of Finance announced today.
In a statement, the ministry, overseen by Fernando Medina, said that despite the year-on-year improvement in the adjusted budget balance until October, the surplus fell by 1,062 million euros compared to the previous month.
The annual development of the surplus is the result of an 8.9% improvement in revenues, which is greater than the 4.9% increase in expenditure.
The data released by the government today, in anticipation of the budget implementation and to be published by the Directorate General of the Budget (DGO), has been adjusted for the effect of the integration of the Caixa Geral de Depósitos Pension Fund (FPCGD).
The improvement in effective income mainly reflects the resilience of the labor market, while the increase in effective expenditure (which reaches 7.5% if adjusted for the effect of the Covid-19 measures and the impact of the geopolitical shock) “ strongly influenced” by “Income strengthening measures, through social benefits, and the reflection of inflation in public procurement”.
Until October, tax revenues increased by 9.1%, significantly affected by the increase in direct tax revenues, while contributory revenues increased by 11% compared to the same period last year.
The increase in expenditure until October, compared to a year earlier, is still driven by salaries, the purchase of goods and services, investments and social benefits.
The Ministry of Finance points out that expenditure on social benefits increased by 16.7%, largely due to the update of the Social Support Index (IAS) and salary increases.
Personnel costs increased by 7.7%, expenditure on the purchase of goods and services increased by 6% and expenditure on investments in the Central Administration and Social Security increased by 15%, excluding PPP.
The data released by DGO comes from the public accounting perspective, which is different from national accounting, released by the National Statistics Institute (INE) and traditionally used in international comparisons.
Source: DN
