State tax revenues grow by 10%, mainly due to the increase in personal income tax by 20.8% to 30.21 billion
31 ()
The State deficit in the first six months of the year stood at 18.709 billion euros, which represents a reduction of 23.7% compared to the 24.516 billion recorded in June of last year, and stands at 1.21% of GDP, compared to 1.68% in 2023, according to data from the Ministry of Finance published this Wednesday.
“The evolution of the first half of the year shows that the State deficit continues the downward path that began in 2021 and that has continued in 2022 and 2023 as a result of the improvement in economic activity and employment,” the Department headed by María Jesús Montero highlighted in a statement.
The Ministry of Finance also published data on the consolidated public deficit of the Central Administration, autonomous communities and Social Security, in this case up to the month of May, which stands at 1.18% of GDP, up to 18,291 million euros, 6.2% less than in the same period last year, including financial aid.
STATE TAX COLLECTION GROWS BY 10%
Considering the State deficit, the report explains that if the interest is deducted from this negative balance, the primary balance is obtained. Thus, at the end of June 2024, a primary deficit of 3,119 million was obtained, compared to the primary deficit of 10,704 million in 2023.
This evolution is due to a 6.4% increase in revenue to 131.98 billion, while expenses have increased by 1.5% to 150.689 billion.
In detail, non-financial resources stand at 131.98 billion, which implies a 6.4% increase compared to the same period in 2023. Within these State revenues, those linked to taxes reach 111.96 billion, nearly 85% of the total resources, and grow by 10% compared to June 2023.
This evolution of tax revenues is mainly due to the increase in income from personal income tax by 20.8% to 30.21 billion, a figure equivalent to 27% of total taxes.
In the case of VAT, growth was 6.6%, 3.222 billion more, up to 51.707 billion, due, among other causes, to the recovery of the electricity tax rate from 5% to 10% during the first two months of the year, and to 21% from March 1 to June 30.
Furthermore, this effect is enhanced as a result of the fact that the taxable base of VAT on electricity includes the Special Tax on Electricity, whose tax rate is also being recovered, from 0.5% to 2.5%, during the first quarter of 2024, and to 3.8% in the second quarter, and at the same time the energy that is entering the system since January 1 no longer does so at zero cost with regard to the Tax on the Value of the Production of Electrical Energy (IVPEE), because it has been reactivated, although in a staggered manner during the first and second quarters.
The VAT rate on gas is also being restored, from 5% to 10% during the first quarter of 2024 and from 1 April to the original rate of 21%. In the case of briquettes and pellets from biomass and firewood, the rate has gone from 5% to 10% throughout the first half of 2024.
For its part, income from social contributions stands at 3,277 million, with a decrease of 1.4% and the rest of the income with 16,743 million decreased by 11.6%, 2,188 million less, mainly due to the fact that in 2024 there has been no income from dividends from the Bank of Spain corresponding to the 2023 profits, since these were null, while in 2023, from the 2022 profit, 1,369 million were received.
As for expenditure, at the end of June it stood at 150,689 million, 1.5% higher than that recorded in the first six months of 2023. The largest item is transfers between public administrations, which represent around 62% of total non-financial expenditure. Specifically, in the first half of the year they amounted to 92,750 million, 1% more than the previous year.
THE DEFICIT OF THE AUTONOMOUS COMMUNITIES IS WORSENING
As for the administrations as a whole, the Central Administration recorded a deficit of 7,953 million in May, 0.51% of GDP. This result, including financial aid, improves on that of the 2023 period, which stood at a deficit of 10,658 million.
For their part, the autonomous communities recorded a deficit at the end of May 2024 of 10,446 million, equivalent to 0.67% of GDP, rising from 0.51% in 2023. This result is due to an increase in expenses of 5.9%, while income increased by 2.9% compared to May 2023.
Finally, the Social Security Funds at the end of May 2024 recorded a surplus of 108 million, while in the same period of 2023 they had a deficit of 1,412 million. There is an increase in income of 8.9%, which has exceeded by 1.9 percentage points the increase in expenses, which has stood at 7%.
Add Comment