Page 73 - economic report 2021

than in 2020. 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 rises to 27.6%, 1.5 points less than in 2020 and a
much higher percentage than their share of total non-financial expenditure (22.5%).

By chapters, the increase in revenue was the Comú revenue grew slowly in 2021, driven
result of an €8 million increase in financial especially by growth in indirect taxes.
liabilities, which easily offsets the fall in non-
financial revenue (-3.5%). Within the latter, the
decline was more notable in the case of capital income (-6.2%) than current income (-2.8%). The
breakdown of current income by tax forms shows disparate trends, with a notable double-digit
increase in revenue from indirect taxes (27.7%) and, to a lesser extent, from direct taxes (2.4%),
favoured by the improvement in the economic context. These increases were more than offset
by the downturn in investment income (-23.9%), current transfers (-9.8%) and the entry of other
taxes and revenue (-3.5%) which, even so, is still the largest component by volume.

Consequently, the percentage of other taxes and revenue was still 28.5% of total non-financial
revenue. These are followed in importance by direct taxes (24%), which has gained since 2020,
and current transfers (15.7%), which made a smaller contribution.

Moreover, capital income saw a decline of 6.2% due to a cut in real investment (-14.9%) and capital
transfers (-6%). Nevertheless, capital transfers are still the third most important chapter in Comú
non-financial revenue, with the percentage dropping to 19.5%. Income from transfers of real
investments is a very small percentage (0.3%), making their contribution to the total insignificant.

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The distribution by parish again shows an uneven trend. In 2021, there were very different
increases in Encamp (28.8%), La Massana (7.7%), Sant Julià de Lòria (2%), Ordino (1.6%) and
Andorra la Vella (0.2%). On the other hand, important declines were recorded in Canillo (-22.7%)
and Escaldes-Engordany (-10.9%). Following this trend, Andorra la Vella is still at the top of the
Comú ranks by volume of total income, with €46.4 million (28% of the total), whereas Ordino is
still the Comú with the least revenue, with 7.6% of the total, equal to €12.5 million.

2.2. Expenditure

In 2021, the settled expenditure of the Comú
governments saw growth of 15.4%, reaching COMÚ GOVERNMENTS’ NON-FINANCIAL
€162 million, a trend that contrasts with EXPENDITURE - Millions of euros Chart 8.9
the steep downturn in 2020 (-13.8%), and
practically recovering the level they had in
2019. Equally, non-financial expenditure saw
an increase of 15.3% and financial transactions
increased 15.7% due, above all, to the increase
in expenditure on financial assets, to which The Andorran economy: general developments | VIII. The public sector
was added a small increase in financial
liabilities. Altogether, this put the percentage
of execution of total budgeted expenditure for
2021 at 95.5%, slightly lower than the level of
execution for revenue. Operat ng costs Capital expenditure
Other current expenditure
Moreover, the Comú governments’ percentage
Source: Comú governments / Department of Stat st cs.
of total public sector expenditure (combined