Page 67 - Economic report 2020

GOVERNMENT BUDGET EXECUTION - Millions of euros
Chart 8.4

Non-financial revenue Non-financial expenditure Cash balance
Note: In 2022, revenue associated with putting euros into circulation among the country’s banks (3,852 thousands of euros) are recognised in the chapter
of investment income, whereas until 2021 they were included in the chapter of financial liabilities. In 2021, this revenue relating to euro circulation rose to
3,739 thousands of euros. So, if we were to follow the same criteria as in 2022, the 2021 cash deficit would be €74,092.09 thousands of euros (instead
of 77,831.09) and the 2022/2021 variation would be -198.2%.
Source: Ministry of Finance.

If we add the financial transactions (changes The Government ended 2022 with
in financial assets and liabilities) that were a surplus of 2.3% of GDP.
executed in 2022, a negative budget result
of €15.4 million is obtained, representing the 65
highest deficit since 2015. The increase in revenue from changes in financial assets and liabilities
can mainly be explained by the newly-authorised debt and also funds raised to refinance part of
the debt transactions maturing in 2022.

As for the breakdown of these financial transactions, the most notable movement this year was a
debt transaction with issue date of 23 February 2022, for the amount of 500 million euros. This is
an issue of social, sustainable bonds to be added to the one on 13 October 2021, both intended
mainly to refinance various bond issues that matured in 2022.

The global debt of the central The global debt of the central government
government remained high, was 1,190 million euros which, even though
at around 1,190 million euros. representing a reduction of 8.6% from the
historic high in 2021 (1,302 million euros), is
still the second highest figure in the historical
series. Within the structure of this debt is notably the outstanding balance of public debt in
national bonds, of 1,175 million. To this is only added a line of credit of €15 million with the
Council of Europe Development Bank (CEB). The other sources of finance that the Government
had active in 2022 are no longer active.

In proportion to GDP, this debt volume represents 37.3%, nine points less than in 2021. So, the debt Andorran economy: general developments | VIII. Public sector
ratio returned to below the 40% limit established in the Law on Public Finance Sustainability for the
central government, after exceeding it in 2020 and 2021 due to the exceptional pandemic situation.
(For this purpose, the Government presented a financial balance plan to restore budget stability).

The improvement in the public accounts is a pattern common to the other developed economies
in 2022. Overall, Andorra still has lower levels of public debt than most European governments. As
for the term structure of Andorran debt, for the first time since 1999, all public debt is long term,