Page 64 - economic report 2021

VIII. The public sector

The trend in the public administration accounts in 2021 varied according to the levels of
government. Specifically, the central Government is the only level of public administration to
record a deficit, but is also the one that improved most in relation to 2020, by reducing the
imbalance to 2.8% of GDP, 1.4 points less
than in the previous year. This correction The central Government reduced
was possible thanks to the recovery in tax the def cit in 2021, and the Comú
revenue after the major downturn caused by
the health crisis in 2020, together with a more governments and CASS ended the
contained trend in expenditure. In contrast, the year with small surpluses.
Comú governments have the highest surplus,
although this shrank by more than one point in 2021, to 0.5% of GDP, due to a fall in non-financial
revenue combined with a two-digit increase in expenditure. Finally, the Andorran Social Security
System (CASS) obtained a slight surplus, equal to 0.1% of GDP, in comparison with the virtual
financial equilibrium at the end of the previous year.

The official statistics have not yet published the consolidated budget balance for all the administrations,
which would enable a better evaluation of the net economic impact of the performance of the whole
Andorran public sector, although the positive trend in GVA in the branch of Public administration,
education, health, social and personal services (3.5%) indicates that the impact was expansionary,
contrasting with the negative contribution to GDP growth in 2020.
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The budget imbalance recorded by the Government in 2021 was accompanied by another increase
in its level of debt, along with the Comú governments. So, the total debt of Andorra (central and
Comú governments combined) reached €1,419
Public debt reached a new million, 17% more than in 2020. This amount

historic high of 50.4% of GDP. is equal to 50.4% of GDP, 2.6 points more
than the previous year, a figure that sets a new
historic high. Moreover, this level exceeds the
50% limit set by the Law on Public Finance Sustainability for the first time, although it does meet
The Andorran economy: general developments | VIII. The public sector
the revised debt target set in June 2021 (59.8%), which considered the impact on public spending

Chart 8.1
NON-FINANCIAL CASH SURPLUS OR DEFICIT OF THE PUBLIC ADMINISTRATIONS (% GDP)

Central government Comú governments CASS

Source: Ministry of Finance, Comú governments, CASS, Department of Stat st cs of the Government and own preparat on.