The State recorded a budget surplus on government accounts of 6,387 million euros until November, an improvement of 4,306 million euros compared to the same period last year, the Ministry of Finance said on Friday.
In a statement, the Ministry of Finance pointed out that the budget balance has stabilized compared to the previous month, with an improvement of 172 million euros compared to the value observed in October.
The budget surplus recorded until November reflects a 10.4% year-on-year increase in effective revenues, above the 5.8% increase on the effective expenditure side.
The data released by the government on Friday, ahead of the budget implementation 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 year-on-year improvement in effective revenues, according to the ministry under the supervision of Fernando Medina, is mainly due to the “resilience of the labor market”, which is reflected in the increase of 14.7% of the IRS and 10, 7% of social security contributions.
Overall, tax revenues rose 9.6% in November compared to the same month last year.
On the effective expenditure side (which increases to 8% if adjusted for the effect of the Covid-19 measures and the impact of the geopolitical shock), the Ministry of Finance points out that the increase observed until November, compared to the same period last year , “is still driven” by wages, the acquisition of goods and services, investments and social benefits.
“Personnel costs increased by 7.7%, due to transversal salary adjustments for employees in the public administration, the impact of the increase in the guaranteed minimum monthly wage and the increase in the meal allowance,” emphasizes the statement in which the contributions in this section of salaries are highlighted from the National Health Service (+8.3%) and PSP and GNR (+8.6%).
Spending on the purchase of goods and services increased by 6.4%, “accelerated compared to the previous month”, with the Ministry of Finance highlighting the evolution in higher education (+22.6%) and local government (+13 .5%) emphasized. Excluding the basic effect of the Covid-19 measures, this expenditure item grew by 12.7%
The same information also shows that the impact of measures related to the geopolitical shock amounted to €2,661 million until November, of which €1,155 million relates to measures with an impact on the expenditure side (such as exceptional support for the most vulnerable groups (including support for children and youth and support for agricultural production sectors).On the revenue side, the impact amounts to €1,507 million, focusing on measures to reduce taxes on fuel and food (such as zero VAT).
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
