O surplus recorded up to February compares with the 1,177 million euros in January, with the statement from the Ministry of Finance noting that the year-on-year variation in the budget balance reflected an increase in effective revenue of 4.1% and an increase of 15.9% in effective expense.
At the time, the ministry then led by Fernando Medina, pointed out that the data on the evolution of expenditure and revenue referred to “only” two months of budget execution, and were therefore “still susceptible to registering significant year-on-year variations, whose effects end up being smoothed out throughout the year”.
Until February, the State’s tax revenue totaled 8,246.1 million euros, decreasing 3.7% compared to the same month last year.
Revenue growth was negatively influenced by the 7.6% year-on-year drop in indirect taxes, with VAT standing out, falling 11.7% (-471.9 million euros).
Direct taxes registered a positive year-on-year variation of 3.0% in the first two months of the year (95 million euros more).
Still in terms of revenue, the February budget execution revealed a year-on-year increase in Social Security contributions (+10.4%).
On the expenditure side, the year-on-year increase up to February reflected the rise in expenditure on current transfers (+15.4%), acquisitions of goods and services (+12.5%), investment (+98.4%) and expenditure on personnel (+8.6%).
It should be noted that the increase in personnel expenses is influenced by transversal public administration remuneration updates and the impact of the increase in the national minimum wage to 820 euros.
Expenditure on social benefits (excluding pensions) grew 23.8%, which reflects, above all, the update of the Social Support Index (IAS) and the increase in remuneration.
The data released today by DGO are from the perspective of public accounting, which differs from national accounting, released by the National Statistics Institute (INE) and traditionally used in international comparisons and in the assessment of Brussels.
Read Also: OE2024. DGO releases February budget execution today
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