Page 73 - Economic report 2020

The total debt of the Comú Within the context of the whole Andorran
governments fell 35% and reached public sector, the Comú governments reduced
the lowest level in the historica their share of the total public debt (combined
central government debt and Comú debt)
series (2.5% of GDP). to a historic low of 6.2%. This figure is well
below the Comú share of non-financial public
expenditure (25.1%) and represents only 2.5% of Andorran GDP. All in all, this means that, in
relative terms, they are much less indebted than the central government, the reverse of the
situation before 2013, thanks to the fiscal consolidation efforts in recent years and improvements
in their financing system.

By parish, the fall in debt was generalised, but the greatest cuts in relative terms occurred in
Canillo (-83%), La Massana (-50%), Escaldes-Engordany (-34%) and Sant Julià de Lòria (-33%).
In relation to the distribution of the debt in absolute terms, Encamp and Andorra la Vella each
account for about one fourth of the total Comú debt. At the other extreme, the Comú with
the lowest volume of public debt in 2022 was Canillo (5.3% of the total), less than Escaldes-
Engordany (7.0% of the total), traditionally the parish with the least debt. Per capita, the parishes
with the highest levels of debt are Ordino and Encamp, with €2,275 and €1,579 per capita debt,
respectively. The debt per inhabitant of the others is below €900, and the lowest per capita debt
is in Escaldes-Engordany, with €365/inhabitant.

2.1. Revenue

In 2022, the total settled revenue of the Comú governments saw an increase of 17.1%, much 71
higher than the 1.4% in 2021. As a result, revenue reached a figure of €194.2 million, the highest
level since 2008. In fact, settled revenue was slightly above the budgeted figure (103%), putting
its percentage of total public sector revenue (combined central and Comú governments) at 15%,
1.9 points more than in 2021. Remember, however, that this percentage is distorted by the
volume of financial liabilities of the central government, due to its debt requirements. In fact, if
we only consider non-financial revenue, the Comú governments’ share is 25.6%, two points less
than in 2021 and a similar percentage to the parish corporations’ share of total non-financial
expenditure (25.1%).

By chapters, the increase in revenue was the Comú revenue grew strongly
result of an 18.8% increase in non-financial in 2022, driven especially by
revenue, as financial transactions decreased
16.9%. Among the former, growth was similar the growth in direct taxes.
between current income and capital income
(around +18%). The breakdown of current income by forms of tax shows disparate trends, with
a notable double-digit increase in revenue from direct taxes (+15.3%) and a slight increase in
indirect taxes (+0.7%), the opposite of the previous year. Other taxes and revenue also rose
(+29.2%) as did investment income (+64.3%), while current transfers saw a slight decline (-0.7%).

Consequently, the percentage of other taxes and revenue rose to 31% of total non-financial Andorran economy: general developments | VIII. Public sector
revenue. These are followed in importance by direct taxes (23%), and current transfers (13%).

Moreover, capital income saw an increase of 18.3% due to strong momentum in capital transfers
(+18.6%). This is the third most important chapter in Comú non-financial revenue, with 19% of the
total. Income from transfers of real investments has remained much the same as the previous year
and being a very small percentage of the total (0.3%), its contribution is insignificant.