Page 65 - economic report 2021

Chart 8.2
PER CAPITA DEBT (€/person)

Central government Comú governments
Notes: (1)Data published by the Comú governments for 2021 and data reviewed by the Court of Audit for the other years, except in the cases of Canillo
and Escaldes-Engordany, for which the debt data for 2020 reviewed by the Court of Audit is not available, so the data published by the respect ve Comú
governments are used. (2) Calculated on the basis of the est mated populat on.
Source: Ministry of Finance, Comú governments, Court of Audit and own preparat on.

of the pandemic. Per inhabitant, the per capita debt (calculated using the estimated population)
rose to €17,841, 15.1% more than in 2020, representing two years of two-digit growth and
reaching the highest nominal value in the available historical series.

The tax burden fell seven As for the tax burden, it is estimated that in
tenths to 24.6%, thanks to GDP 2021, according to the accrual principle, it fell
growth not reduced taxes. seven tenths to 24.6%, after hitting a historic 63
high in 2020. Now, this downward trend is not
the result of a reduction in taxes or revenue;
on the contrary, total tax revenue rose 8.4% but the tax burden denominator, nominal GDP, grew
even more (11.2%), causing the indicator to fall.

From a European perspective, Andorra’s tax burden is much lower than the 41.3% European
average (according to 2020 data for the EU-27) or the levels of our closest European neighbours:
France (47.5%) and Spain (37.5%), so Andorra is still a tax-friendly country. In fact, within the
context of the EU-27, the only country with a lower tax burden than Andorra is Ireland (20.8%).
Not far behind Andorra but slightly higher is
Switzerland (27.7%).
GDP, ACCRUED TAXES AND
Among the tax figures, growth was notable TAX BURDEN Chart 8.3
in direct revenue (current taxes on income
and property) at 23.5%, much higher than
in indirect revenue (8.6%), i.e. taxes on
production and imports. This trend can be
explained by the restrictions on economic
activities implemented during the pandemic, The Andorran economy: general developments | VIII. The public sector
which undermined consumption more than
income, as the Government took measures
to offset losses of income, such as the ERTO
furlough scheme to sustain income from
employment. In this way, a slight increase in
social contributions was also achieved, the GDP Accrued taxes Tax burden (right axis)
result of two counterbalanced trends – the
reduction in employment and wage growth. Source: Department of Stat st cs.