The Ministry of Finance has published the budget execution data for the first quarter of 2019 of all Public Administrations, including for the first time in the year the execution data of the Local Corporations.

The deficit of all Public Administrations amounts to 0.31% of GDP, 4.2% lower than that registered in the same period of the previous year.

On the other hand, the budgetary execution of the State corresponding to the month of May has also been published, which recorded a deficit of 1.21% of GDP.

Finally, the consolidated deficit of the Central Administration, Autonomous Communities and Social Security for the month of April, which stood at 0.58% of GDP, excluding financial aid, has also been disseminated.

State deficit (May)

Up to May 2019, the State registered a deficit of 15,202 million. In terms of GDP it is equivalent to 1.21%, which represents an increase of 0.04 percentage points compared to May 2018. This evolution of the public deficit is explained by an increase in resources of 1.3%, compared to the increase of expenses of 2.4%.

As in the previous months, the comparison of the deficit data is not homogeneous. It should be borne in mind that the rise in compensation of employees and pensions for this year does not have their equivalence in 2018. Last year, the increases of both items were accounted for after the approval of the Budgets in July. Therefore, the comparison will be homogeneous from the second part of the year.

Non-financial resources of the State

Non-financial resources amounted to 70,019 million, which represents an increase of 1.3% compared to 2018.

The tax resources – which represent 85.5% of the total – amount to 59,872 million, representing an increase of 0.3%. The increase of 3.2% of VAT stands out, up to 30,981 million. Also the increase of 8.2% of the Tax on Hydrocarbons to 5,059 million and 1.4% of the IRPF, to 10,931 million.

The Corporation Tax is reduced by 9.3% to 7,014 million. However, revenues from the first installment payment increase, according to AEAT data, by 2.8%. This difference between cash and national accounts is due to the impact on the tax for the return of minutes to a single company (700 million) and for the presentation of a 2016 statement late, in 2018 (300 million).

Property income increased by 6.9% driven by the higher dividend received from the Bank of Spain (19.7% more) and by the ENAIRE dividend, which increased by 6.6%.

Non-financial state employment

Up to May, non-financial employment amounted to 85,221 million, registering an increase of 2.4% with respect to the same month of 2018.

This evolution is explained fundamentally, as in the previous months, by the increase in current jobs, highlighting: the largest contribution to the EU, which increases by 17.5% and the increase in current transfers to other public administrations, which they grow by 4.2%, mainly to Autonomous Communities due to the financing system.

As for other expenses, the increase in intermediate consumption stands at 15% due to the electoral expenses of the year and the increase in the remuneration of salaried employees, which rises by 7.4% due to the salary equalization of Police and Civil Guard with the autonomic bodies. It also affects the salary increase of 2.25% for 2019 over the 1.75% of December 2018 and against the 1% prevailing during the first semester of 2018.

Current transfers between public administrations grew by 4.2% (1,941 million), especially those made to Social Security Funds, which increased by 7.4%. Transfers to the Autonomous Regions increased by 4.7%. On the other hand, transfers to the Central Administration Bodies decrease by 9.7%.

Among the expenses that descend, interest stands out, which is reduced by 4%. Also aid to investment and other capital transfers, which are reduced by 13.2%, and subsidies for the lower expenditure allocated to cover the electricity deficit, which drops by 53%.

Joint deficit of the Central Administration, Autonomous Communities and Social Security (April)

In the first four months of 2019, the deficit of the Central Administration, the Autonomous Communities and the Security Funds amounts to 7,316 million. In terms of GDP, this figure is equivalent to 0.58%, registering an increase of 0.05 percentage points of GDP.

Central administration

The Central Administration has increased its deficit to 8,555 million, 0.68% of GDP.

– The State deficit is equal to 0.63% of GDP, which is 7.862 million.

– The Central Administration Bodies have a deficit of 693 million, 2.9% less than in the same period of the previous year.

Autonomous communities

The regional administration has registered a deficit of 2.425 million compared to 1.994 million in the same period of the previous year.

Resources have increased by 4.6%, mainly due to the improvement of taxes, which grew by 6.9% (1,256 million). Also transfers between public administrations, which rose by 4.7% (1,307 million).

On the other hand, jobs grew by 5.3%. The increase of 6% in the remuneration of employees and 5.9% in social benefits other than transfers in kind stands out. On the contrary, interest is reduced by 2.5%.

Table of data on financing of the autonomous communities

Social Security Funds

The Social Security Funds have obtained a surplus of 0.29% of GDP, 64.5% higher than that registered in April 2018. Resources have increased 10.1%, highlighting the strong increase in the prices of 8 , 8% and of the transfers received from the State that grew by 17.8% (1,035 million more). On the other hand, non-financial expenses increased by 7.7%, driven by the increase in social benefits, which grew by 6.9%.

The Social Security System has registered until April a surplus of 2.345 million, 0.19% of GDP, higher by 71.9% than that registered in the same period of the previous year.

Revenue from social contributions increased by 8.6% while social benefits other than social transfers in kind increased by 7.5%.

This evolution responds, as in previous months, to the impact of various measures approved by RDL 28/2018, such as raising the contribution bases, or the obligatory incorporation of all the contingencies, before voluntarily, in the special autonomous regime.

In terms of expenses, the 7.1% growth in contributory pensions is mainly due to the 3% increase in minimum pensions and 1.6% in the rest of pensions, applied in 2019 (RDL 28 / 2018). A measure that is added to the additional increase that was applied as of July 2018, of 2.75% in the minimum and of 1.35% in the rest of pensions (Law 6/2018); and to the difference in the average amount of the new pensions with respect to those that cause sick leave.

The Public Service of State Employment presents until April a surplus of 1.256 million compared to the 781 million of the same period of the previous year, due in part to the increase of the social contributions in a 9.7% by the improvement of the employment and the increases salaries, while expenses increase by 7.7% and spending on unemployment benefits rises by 4%.

The FOGASA records a surplus of 63 million euros, compared to the surplus of 83 million from the previous year.

Joint deficit of Public Administrations (March)

Finally, the first budgetary execution data of 2019 of the Local Corporations, corresponding to the first quarter of the year, have also been published today. In this period, they have registered a surplus of 119 million, equivalent to 0.01% of GDP.

With this data from Local Corporations, the deficit of all Public Administrations in the first quarter of the year amounts to 0.31% of GDP compared to 0.33% the previous year, which represents a fall of 4.2%.

Table of data on the financing of Public Administrations (first quarter 2018-2019)Moncloa Pool

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