Page 71 - Economic report 2018

Box 8.1
TARGETS FOR FINANCIAL SUSTAINABILITY AND FISCAL AND
BUDGETARY STABILITY FOR 2019

Under chapter three of Law 32/2014 on Financial CURRENT OR OPERATING EXPENDITURE
Sustainability and Fiscal and Budgetary Stability, TARGET 2019
the preparation and approval of the annual (growth rate)
budgets of the central and Comú governments Central Government current expenditure target 3.2%
must be aligned with the general budget framework Comú of Canillo current expenditure target 6.0%
that covers the term of mandate. It is also Comú of Encamp current expenditure target 6.0%
stipulated that the Court of Accounts must Comú of Ordino current expenditure target 10.0%
publish the financial sustainability and fiscal and Comú of La Massana current expenditure target 2.5%
budgetary stability targets for the central and Comú of Andorra la Vella current expenditure target 9.5%
Comú governments annually, so they can be Comú of Sant Julià de Lòria current expenditure target 12.0%
considered when preparing and monitoring the Comú of Escaldes-Engordany current expenditure target 5.0%
budget framework.
DIRECT TAX TARGET PERCENTAGE 2019
The set targets for 2019 are as follows: Target direct tax percentage of total direct and
indirect taxes of the central Government 36.2%

DEBT TARGETS 2019
(as % of GDP) Compared with the situation in 2018, the most
Debt target for Andorra 40.7% relevant aspects of 2019 are:
Debt target for the central Government 34.1%
The debt targets for 2019 are still much higher than 69
DEBT TARGETS OF COMÚ GOVERNMENTS 2019 the levels seen in 2018, although they have hardened
(as % of average settled total revenue in the three, in the case of Ordino, La Massana and Escaldes-
immediately-preceding calendar years) Engordany.
Comú of Canillo debt target 180.0%
Comú of Encamp debt target 140.0% The permitted expenditure target for the central
Comú of Ordino debt target 150.0% Government exceeds the settled totals in 2018 and
Comú of La Massana debt target 113.6% therefore leaves a margin for increasing expenditure
Comú of Andorra la Vella debt target 135.0% in 2019.
Comú of Sant Julià de Lòria debt target 175.0%
Comú of Escaldes-Engordany debt target 82.0% The current expenditure growth targets have
softened for all Comú governments except Canillo,
PERMITTED EXPENDITURE TARGET 2019 in contrast with the central Government, whose
target was lowered by one tenth.
Central Government € 457,911,235
permitted expenditure target
In summary, the less restrictive expenditure targets
within an economic context that is expected to
continue to rise should enable administrations to
stay within the targets set for 2019. The Andorran economy: general developments | VIII. The public sector

budget balance of all the administrative bodies, so we cannot confirm the net economic effect of
the performance of the whole Andorran public sector, although it would appear to be expansive.

The slight deterioration in the Government and Comú budget balances slowed the falling
trend of public debt which started in 2013, after it reached a historic high in 2012. So,
Andorra’s total debt (central and Comú governments) was 1,033 million euros, only 0.2%