Page 77 - economic report 2021

In comparison with Europe and according to 2019 inhabitant, Andorra outstrips Spain, with per capita
data, the latest available, i.e. from before the pandemic, spending of €1,929 in 2019, compared with a figure of
public spending on health as a percentage of GDP €1,703 in Spain. Now, Andorra’s expenditure is still far
(5.3%) is below that of Spain (6.5%), France (9.3%) and from France’s (€3,355 per capita) and the European
the European average (7.9% in 2018). In contrast, per average (€2,377 per capita in 2018).

PUBLIC SPENDING ON HEALTH IN EUROPEAN COUNTRIES (Euros per capita)

Note: 2019 data for all countries except the EU-27 (2018).
Source: Eurostat and Government of Andorra.

The def cit in the general branch 75
cont nues to increase, while the surplus CASS REVENUE AND EXPENDITURE BY Chart 8.11
BRANCHES. 2021 (millions of euros)
in the pension branch decreases.

Growth in expenditure on general branch
benefits (5%) was much stronger than in
revenue from contributions, to €177.7 million.
Consequently, the budget deficit in this
branch increased to €45.8 million, a historic
high. The imbalance between revenue from
contributions and expenditure on benefits in
the general branch is a problem that began
in 2007 and deepened during the years of Revenue Expenditure
economic crisis to reach a high in 2015. During Note: Data relat ng to revenue from contribut ons and expenditure on benef ts.
the period 2016-2018, the situation improved Source: CASS (Andorran Social Security System).
but the deficit increased again over the last
three years.

This imbalance is financed by contributions from the Government budget, according to Article The Andorran economy: general developments | VIII. The public sector
86.3 of Law 17/2008, a situation has been repeated since 2012, after the cumulative reserves of
this branch were depleted in 2011. In future, the prospects of a progressively aging population
and growth in chronic diseases would indicate that health costs will continue to rise, making it
difficult to restore financial equilibrium if the current conditions for contributions and coverage
are maintained.