The Ministry of Finance has also published the state budget execution data for the month of June, whose deficit was equivalent to 0.84% of GDP.
The Ministry of Finance has published on his website State budget execution data for the month of June, whose deficit was equivalent to 0.84% of GDP. The consolidated deficit of the Central Administration, Autonomous Communities and Social Security in May, which stood at 1.35% of GDP, excluding financial aid, has also been disseminated.
State deficit (June)
In the first half of the year the State has registered a deficit of 10,514 million euros. In terms of GDP, it equals 0.84%, which represents 0.16 percentage points more than in June 2018. This evolution of the public deficit is explained by an increase in expenses of 3.8%, compared to the improvement in Resources 1.8%.
The primary surplus of the State, which excludes accrued interest, was 2,278 million euros, 0.21 percentage points less than the primary surplus recorded in the first half of 2018.
As in the previous months, the comparison of the deficit data is not homogeneous. It should be taken into account that the increase in the remuneration of employees and pensions for this year does not have their equivalence in the first months of 2018. Last year, the increases in both items were accounted for after the approval of the Budgets in July . So, in the coming months, this trend will soften.
Non-financial resources of the State
Non-financial resources amounted to 94,744 million, which represents an increase of 1.8% compared to 2018.
Tax resources, which represent 86.7% of the total, amount to 82,143 million, representing an increase of 1.2% year-on-year. For tax figures, the increase in VAT stands out by 3.1% to 41,960 million. Also the 5% increase in personal income tax, to 19,244 million. On the other hand, income from the Corporation Tax decreased by 9.6% to 7,558 million. This negative evolution of the tax is due to a return of minutes to a single company (700 million) and the presentation of a 2016 statement out of term, in 2018 (300 million). However, the main income corresponds to the first installment payment, which is 3.1% higher than the previous year.
In addition, property income has increased 3.3%, due to higher dividends received from ENAIRE. Current and capital transfers between public administrations have been 9.1% higher than those of 2018, mainly due to a transfer received in 2019 from the Traffic Department for 233 million, as well as higher revenues from the System of financing of the Autonomous Communities.
Non-financial State Jobs
Until June, non-financial jobs amounted to 105,258 million, registering an increase of 3.8% compared to the same month of 2018.
In this evolution, the greatest contribution to the EU stands out, which increases by 15.1% and the 4% increase in current and capital transfers between Public Administrations, which represent 55.1% of State spending. The largest deliveries on account of the Financing System made to the Autonomous Communities, not including advances, have increased by 5.6% (1,778 million). Deliveries on account for the Financing System made to Local Corporations have also increased by 4.6%.
8.4% more have been transferred to the Central Administration Organizations than in 2018, while transfers to the Social Security Funds have decreased by 1.8% to 8,030 million, which have been transferred in their totality to the Social Security System.
As for the rest of the expenses, the increase in intermediate consumption stands out by 11.7%, mainly due to the electoral expenses of the year. Social benefits other than in-kind social transfers that grow by 13.3% and the increase in the remuneration of employees, which rises 7.3% due to the salary equalization of Police and Civil Guard with the autonomous bodies, also influence. Likewise, it also impacts the remuneration increase of 2.25% agreed for 2019 over 1.75% in December 2018 and compared to the 1% in force during the first half of 2018.
Among the expenses that fall, interest stands out, which is reduced by 1.7% and gross fixed capital formation that falls by 13%. It also decreases investment aid and other capital transfers, which are reduced by 3.4%, and subsidies for the lower expenditure allocated to cover the electricity deficit, which falls 34%.
Joint deficit of the Central Administration, Autonomous Communities and Social Security (May)
In the first five months of 2019 the joint deficit of the Central Administration, the Autonomous Communities and the Security Funds, stood at 16,957 million excluding financial aid. In terms of GDP, this figure is equivalent to 1.35%, registering an interannual increase of 0.04 percentage points of GDP.
If the net balance of financial aid is included in both periods, the deficit would be 16,817 million, which represents 1.34% of GDP. In May of both years, the net balance of financial aid was positive, amounting to 140 million in 2019 and 112 million in 2018.
Central administration
The Central Administration has increased its deficit to 16,336 million, which represents 1.3% of GDP.
– The State deficit is equivalent to 1.24% of GDP (15,528 million) 10% more than in May 2018.
– The Central Administration Organizations register a deficit of 808 million.
Autonomous communities
The Regional Administration has registered a deficit of 4,321 million, which represents an increase of 0.04 percentage points of GDP compared to the month of May of the previous year, standing at 0.34% of GDP.
Social Security Funds
The Social Security Funds have obtained a surplus of 3,700 million, equivalent to 0.29% of GDP. Resources have increased by 8.9%, highlighting the strong increase in contributions of 9%. On the other hand, jobs increased 7.3%.
– The Social Security System registers a surplus of 1,983 million, equivalent to 0.16% of GDP, which represents an increase of almost 59% compared to the same month of 2018. Social contribution income maintains its strong dynamism, with an increase of 8.8%. On the expense side, the 7.3% increase in social benefits other than in-kind transfers stands out, with most of this expenditure corresponding to contributory pensions, which increase by 7%.
– The State Public Employment Service has a surplus of 1,664 million, 0.13% of GDP, compared to 1,096 million registered in May 2018. Revenue has increased 12.5% due to the improvement of social contributions , which grow by 9.7%. The expenses have been 7.3% higher than those of the previous year, motivated by the increase of 4.8% of the expense in unemployment benefits.
– FOGASA records a surplus of 53 million euros, compared to the 123 million surplus of the previous year.