The State accumulated a deficit of 35,665 million euros in the first semester, a figure that is equivalent to 2.95% of START and that is 25.9% lower than in the same period of 2020, which was already affected by the consequences of the pandemic.
According to data published this Friday by the Ministry of Finance, the reduction of the state deficit in the first half of the year was related to a strong rebound in revenue, which grew by 15%, while expenses remained stable, with a small reduction of 0.1%.
Between January and June, the State registered revenues of 94,341 million euros, 15% more, a percentage that would be even higher if the accounting effect of the reversion to the State of two sections of toll roads in 2020 is discounted.
The tax revenue skyrocketed 20.6%, up to 80,611 million euros, compared to 2020, although it must be taken into account that in that year the state of alarm paralyzed a good part of the non-essential activity for weeks.
The income from personal income tax was 18,327 million, 31.5% more -the rebound would be 10.7% if the different schedule of payments on account to the autonomous communities is not taken into account-; that of VAT, at 39,738 million, 16.8% more, and that of corporate tax, at 9,213 million, 42.1%, partly due to the extraordinary 1,100 million from the merger of two large entities.
Beyond the large taxes, in June the first data on the collection of the tax on certain financial transactions are recorded – in force since January but did not begin to be paid until June -, of which 128 million were entered.
In addition, the collection of the tax on insurance premiums increases by 29.6% -whose rate went from 6% to 8% in January- and the income from the auctions of greenhouse gas emission rights by 27.5% greenhouse.
Expenses are maintained
Expenses remained stable in the first half of the year, at 130,006 million, 0.1% less, also affected by the reversal of highways and by the expenses associated with the pandemic, which in the first semester totaled 5,351 million, far from the 15,639 million a year earlier.
In the first half of the year, intermediate consumption fell by 10.1% – due to lower spending in the pandemic – while the compensation of employees grew by 4%.
In primary terms -that is, without taking into account the cost of the debt-, the State deficit stood at 24,038 million euros, 34.8% less and equivalent to 1.99% of GDP.
Hacienda has also published the Consolidated data on budget execution for all public administrations -except the local ones- until May, which show a deficit of 36,036 million euros, 27.5% less than a year before and equivalent to 2.98% of GDP.
The Treasury warns that the comparison of the data from both exercises is not homogeneous, since it corresponds to different moments of the pandemic.
At the end of May, most of the deficit was concentrated in the central administration, with 31,327 million, 4.7% less and 2.59% of GDP.
In the first five months of the year, Social Security funds accumulated a deficit of 2,971 million -80% less than in 2020 and equivalent to 0.25% of GDP-, while the autonomous communities reduced their deficit, up to 1,738 million, 0.14% of GDP.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.