Page 75 - Economic report 2020

investment. Specifically, the chapter of personnel costs, the most important of all with 35% of
the total, increased 5.1%, and consumption of goods and services, the second most important
with 31% of the total, rose 15.4%. In contrast, current transfers saw a decline for the second
consecutive year (-11.5%), after being the chapter that increased most in 2020 due to the support
measures made through transfers to mitigate the effects of the health crisis. In contrast, financial
expenditure saw strong growth (+23%), due to the rises in interest rates. As a result, current
expenditure as a whole rose 8.2%. Growth in capital expenditure was much higher (+17.6%) due
to the recovery in real investment (+17.7%) – the third most important chapter - while capital
transfers shrank 10.6%, following the trend of
the previous year after the exceptional increase Growth in Comú expenditure was
in 2020 from the impact of the measures to concentrated in operating costs
tackle the effects of the Covid crisis.
and financial expenditure, and
To complete the analysis of Comú finances, note in real investment.
that the trend in expenditure rose for four Comú
governments and fell in the other three. The most notable increases were in Escaldes-Engordany
(+16.7%) and Andorra la Vella (+15.0%), followed by Sant Julià de Lòria (+10.4%). In contrast,
expenditure fell to moderate rates in La Massana (-4.2%), Ordino (-3.4%) and Canillo (-0.4%).

3. Andorran Social Security System (CASS)

The settled budget of the CASS in 2022, The public accounts of the CASS
including financial assets and liabilities, reached are practically balanced.
a total volume of revenue of €361.0 million, 73
very similar to the €360.7 million of settled
expenditure. So, the CASS obtained a small surplus of just over €200,000. If only non-financial
revenue and expenditure are counted, in 2022, the CASS non-financial cash balance has a slight
deficit of €156,778, due to slightly higher growth in expenditure than revenue, a figure that
contrasts with the surplus of €1.7 million in 2021.

3.1. Revenue

The settled non-financial revenue of the CASS saw growth of 6.8% in 2022, higher than the
percentage in the previous year (+3.3%), reaching the figure of €357.8 million.

By chapters, social contributions, the most important source of revenue for the CASS, amounted
to €312.5 million, representing 87.4% of total non-financial revenue. This figure includes employers’
contributions, employees’ contributions, self-employed contributions and settled contributions
allocated to CASS financial benefits (retirement and widows’ life pensions, permanent and temporary
disability benefits). In 2022, social contributions saw an increase of 12.9%, after increasing by only
0.5% on average in 2020 and 2021, in a context of steep rises in the number of employees (+10.6%),
the wage bill (+15.2%), and faster growth in the
Social contributions rise strongly again, number of self-employed (+8.4%). Andorran economy: general developments | VIII. Public sector

after almost stagnating in 2020 and 2021.
The second most important chapter in CASS
revenue, with 12% of the total, is current transfers
from the central government, which fell 23.3% in 2022, to €42.6 million, due to elimination of the
transfers received to finance the measures to mitigate the pandemic. The non-financial revenue of
the CASS is completed by a small contribution from other taxes and revenue, which increased by 8%
in 2022, to represent 0.8% of the total. This year there was no investment income.