The Diplomat
The Andorran government has presented a revision of the budget for the 2021 financial year and has increased the deficit to 129 million euros, which is almost double the initial forecast of 65 million euros.
This was presented by the Minister of Finance, Eric Jover, in front of the legislative committee on finance and budget, where he explained that the effects of the Covid-19 pandemic have been “more important than expected for the beginning of 2021”, according to a press release.
By way of example, Jover explained that at the level of customs, income was 47 million, which is 7 million less than in the same period of 2020 and 37 million less than in 2019.
At the same time, expenses have been higher: an additional 13.5 million at the health level, 20 million in economic expenses and 5 million in social expenses.
Therefore, the new extraordinary budget shows a decrease in revenue of 34 million euros; revenue from direct taxation decreases by 5 million euros and by 38 million euros from direct taxes, and is compensated by an increase of 3 million euros in patrimonial revenue and another 7 million euros from transfers.
On the other hand, an increase in expenditure of 27 million euros is forecast, broken down into a drop of 6 million euros in expenditure on goods and services – despite an increase in health costs – and an increase of 41 million euros in expenditure on transfers.
