The state recorded a budget surplus of 2.648 million euros (ME) through August in public accounting, 58 million euros more than in the same period in 2022, the Ministry of Finance said on Friday.
In a statement ahead of the budget performance report of the Directorate General of Budget (DGO), the ministry, headed by Fernando Medina, explains that the adjusted budget balance until August is at the same level as for the same period last year, with a “residual » improvement of 58 million euros.
According to Finance, this evolution is the result of a 6.5% improvement in revenue and a 6.7% increase in expenses.
The earnings improvement was “strongly influenced” by “robust labor markets” (11.7% increase in IRS earnings and 11.4% increase in contribution income).
On the other hand, the increase in spending reflects “measures to increase revenues announced at the beginning of the year (raising government salaries contributes to a 7.6% increase in personnel costs”), social benefits, as well as reflecting inflation in the economy. government orders, which is offset by reductions in pandemic-related expenses.”
The Ministry of Finance emphasizes that the budget balance until August “does not yet fully reflect the effect of the measures taken in March to respond to the geopolitical shock and the interim increase in wages and pensions.”
Excluding emergency measures (COVID-19 and geopolitical shock mitigation measures), effective spending increased by 8.5% and primary spending (excluding interest) increased by 8.8% year on year.
The Ministry of Finance also states that expenses for the purchase of goods and services increased by 4.7%, expenses for investments in central administration and social security increased by 13.5% excluding PPP, and expenses for social payments increased by 14.6%% (excluding PPP). pensions, Covid and emergency family support measures and unemployment benefits).
The data published this Friday by the government is presented from the point of view of national accounting, which differs from the national accounting published by the National Statistics Institute (INE) and taking into account Brussels.
Tax revenues and arrears are rising
According to the budget performance report published this Friday by the General Budget Office (DGO), as of August, government tax revenues amounted to 35,040.1 million euros, an increase of 3.9%.
Thus, tax revenues through August increased by EUR 1,325.5 million compared to the same period last year, which, according to the DGO, is partly due to the extension of IRS and IRC tax payments in August 2022, as well as the extension of VAT payments. this had a positive impact on revenue in 2023 of €69.8 million.
In the first eight months of this year, revenue from direct taxes (which affects income) registered a 3.8% year-on-year growth, while indirect taxes increased by 4.1% compared to the same period in 2022.
Overdue payments from state-owned enterprises totaled €886.3 million as of August, up €102.8 million from the same period last year.
Compared to the previous month, there was an increase of 76.5 million euros.
The year-on-year dynamics are justified by the increases recorded in the regional administration (EUR 48.4 million), in the central administration excluding health care (EUR 45.3 million) and in EPE hospitals (EUR 18.8 million).
EPE hospitals contributed to the monthly fluctuation, increasing by €82.5 million.
To this should be added the contribution of the regional administration (9.1 million euros), the reduction of reclassified public enterprises (10.8 million euros) and the central administration, excluding the health subsector (3.1 million euros).
Social Security
In August, Social Security recorded a surplus of €3,347.4 million, €886 million more than in the same period in 2022.
Effective social security expenditure in the first eight months of this year reached €20,983.2 million, reflecting an increase of 6.3% compared to the same period last year.
The same information indicates that effective social security income reached 24,330.6 million euros during the same period, an increase of 9.6%.
Author: Lusa
Source: CM Jornal
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