Page 69 - economic report 2021

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

Settlement % variation % execution
2021 2021/2020 2021 (2)
Direct taxes 117.1 33.6 174
On capital gains on property 7.6 48.1 190
On personal income (IRPF) 39.3 13.1 127
On companies 57.5 38.2 230
On non-residents’ income 12.7 106.1 179
Indirect taxes 236.2 7.9 83
On property transfers 3.7 34.9 177
On consumpt on of goods (IGI) 115.2 10.3 92
On consumpt on of services (ISI) 3.5 8.0 109
Special taxes 39.3 15.0 93
On foreign trade 74.3 0.5 74
On gambling 0.2 -31.4 10
Other taxes and revenue 29.4 26.2 109
Current transfers 6.8 86.3 12,815
Investment income 24.1 -62.9 120
Real investment sales 0.0 234.5 182
Capital transfers 0.6 -- --
Non-f nancial revenue 414.3 4.0 104

Current expenditure 434.1 -0.9 94
Personnel costs 116.8 -1.0 99
Consumpt on of goods and services 45.4 -0.2 81
Financial expenditure 19.4 48.1 95
Current transfers 252.5 -3.5 95 67
Capital expenditure 58.0 -10.7 71
Real investments 25.3 -24.6 60
Capital transfers 32.6 4.3 82
Non-f nancial expenditure 492.1 -2.2 91

(1) The 2021 budget set lement is provisional.
(2) In the case of expenditure, this is calculated from the f nal budget, achieved by incorporat ng into the budget passed by the General Council the credit
for obligat ons undertaken during the previous f nancial year relat ng to expenses postponed to the following f nancial year, and the modif cat ons and
increases in budgetary credit.
Source: Ministry of Finance.

The other indirect taxes, with lower percentages of total revenue, also showed mostly positive
trends. Of note are the increases in revenue from the ITP tax on property transfers (34.9%), a sign
of the dynamism in this sector of activity; from the ISI tax on consumption of services (8%), and
from the common tariff on foreign trade (60.1%). In contrast, taxes on gambling suffered a major
decline of 31.4%.

In parallel, the trend in the chapter of other taxes and revenue was also favourable, with an
increase in revenue of 26.2%, to €29.4 million (7.1% of total settled non-financial revenue). This The Andorran economy: general developments | VIII. The public sector
growth was mainly driven by three types of revenue: “taxes”, “withdrawals” and “other income”.

In contrast, in 2021, investment income suffered a major downturn (-62.9%), to €24.1 million,
mainly associated with the steep decline in the amount settled as dividends from Andorra Telecom
and the electricity company Forces Elèctriques d’Andorra. Remember that in 2020, both FEDA
and Andorra Telecom made distributions from special reserves of €10 million and €20 million,
respectively, to contribute to the financial effort of the State to finance expenditure arising from
the health crisis.