Page 70 - Economic report 2020

Table 8.1
EXECUTION OF THE GOVERNMENT BUDGET (1) (Millions of euros)

Settlement % variation % execution
2022 2022/2021 2022 (2)
Direct taxes 150.8 28.7 158
On capital gains on property 9.7 28.1 195
On personal income (IRPF) 57.6 46.7 152
On companies 76.2 32.5 181
On non-residents’ income 7.1 -43.6 70
On empty housing 0.005 -- --
Indirect taxes 317.7 34.5 104
On property transfers 3.5 -6.6 124
On consumption of goods (IGI) 148.6 29.0 113
On insurance services provision (ISI) 3.4 -1.2 107
Accommodation tax 2.7 -- 44
Special taxes 38.0 -3.4 88
CO 2 emissions tax 9.3 -- 116
On foreign trade 112.0 50.7 102
On gambling 0.3 55.2 27
Other taxes and revenue 47.7 62.2 128
Current transfers 0.05 -99.3 93
Investment income 28.2 1.4 93
Real investment sales 0.0 -100.0 --
Capital transfers 0.0 -100.0 --
Non-financial revenue 544.5 31.4 116
68 Current expenditure 415.5 -4.3 93
Personnel costs 122.6 4.9 99
Consumption of goods and services 49.5 9.0 82
Financial expenditure 21.6 11.2 96
Current transfers 221.9 -12.1 92
Capital expenditure 56.2 -3.0 60
Real investments 23.1 -8.9 47
Capital transfers 33.1 1.5 73
Non-financial expenditure 471.7 -4.1 87

(1) The 2022 budget settlement is provisional.
(2) In the case of expenditure, this is calculated from the final budget, achieved by incorporating into the budget passed by the General Council the
credit for obligations undertaken during the previous financial year relating to expenses postponed to the following financial year, and the modifications
Andorran economy: general developments | VIII. Public sector
and increases in budgetary credit.
Source: Ministry of Finance.

Regarding legal modifications, note the direct tax reform and amendment of other tax and
customs regulations, passed in January 2023. One of the changes, for example, establishes that
the minimum effective rate of company tax is always more than 3% if the company produces
profits. It also streamlined the system of IGI (VAT) returns.

1.2. Expenditure

Non-financial expenditure settled in 2022 saw an adjustment that reached €471.7 million, 4.1%
less than in the previous year, which is added to the decrease in 2021 (-2.2%), after a two-digit
increase in 2020 (14.7%). This containment only affected current transfers and real investment. In
contrast, operating costs, interest payments and capital transfers increased.