Surplus falls to 758 million euros by February. It is a third of the value of a year ago
In the first two months of the year, the budget balance remains positive, but there was a sharp drop compared to February last year. Tax revenue decreased due to a temporary effect from the payment of VAT. Contributions continue to accelerate. And expenses soared.
The budget surplus fell to 785 million euros by February, representing a decrease of 1,556 million euros compared to the same period last year, the Ministry of Finance revealed this Thursday.
“From the perspective of public accounting, public administrations recorded a budget balance of 785 million euros until February 2024, showing a decrease of 1,556 euros compared to the same period last year”, says the note from Fernando Medina’s office in anticipation of the release of the summary of budget execution by the Directorate-General for the Budget (DGO).
According to Medina’s outgoing office, tax revenue decreased by 2.8%, “influenced by VAT payment deadlines”. Contributory income continues to grow, with an increase of 10.4%, “mirroring the positive dynamics observed in the labor market”, says the statement. As for expenditure, it presents a marked growth profile, with a variation of 15.9%, “reflecting strong growth in the items of current transfers, investment, as well as personnel expenses”, adds the Finance note.
At stake is the increase in pensions and social benefits, personnel expenses and investment.
In the case of personnel expenditure, which shows a year-on-year variation of 8.6%, the Government justifies it with the “transversal salary updates” for public servants, as well as the impact of the increase in the national minimum wage to 820 euros. The investment in the railway justifies a large part of the investment expenditure, which overall grew by 63%.
In the case of expenditure on social benefits – excluding pensions – there is a growth of 23.8%, largely due to the update of the social support index (IAS) and the increase in remuneration.
The Finance statement highlights the solidarity supplement for the elderly (CSI), with a year-on-year increase of 90%); with the family allowance for children and young people; the social benefit for inclusion; and the informal caregiver support subsidy. in pensions, there is a year-on-year variation of 18.1%, “affected by the payment of charges relating to IRS withholdings and the effect of the mid-term increase”, reads the statement released this Thursday.
(News updated at 18:15)
Tags: Surplus falls million euros February amount year State Budget
