Response measures to the covid-19 pandemic had a global impact of 4.2 billion euros on public accounts until November, according to the budget execution released yesterday by the Directorate-General for Budget (DGO).
“Until November, the implementation of the measures adopted in the context of combating and preventing covid-19, as well as those aimed at restoring normality, led to a reduction in revenue of 1,574.4 million euros and an increase in expense of 2,721.6 million euros, ”says DGO.
On the revenue side, DGO highlights the suspension of payments on account of corporate income tax, with an impact of 791 million euros, and the estimated loss of contributory revenue at 518 million euros associated with the exemption from the Single Social Rate (TSU) within the scope simplified layoff, support for a progressive recovery and financial incentive to normalize business activity.
On the expenditure side, the “layoff” was the measure with the greatest impact (821.4 million euros), followed by health-related expenses (420.9 million euros), namely Personal Protective Equipment (PPE) and medicines.
Expenditure on extraordinary support for the reduction of the economic activity of self-employed workers amounted to 270.9 million euros and the extraordinary incentive to normalization amounted to 247.9 million euros, with special mention to the extraordinary support for the progressive resumption of activity, with an impact of 113.7 million euros.
According to DGO, “in the absence of expenses associated with measures within the scope of covid-19, the effective expenditure of Public Administrations would have grown 2% compared to the same period last year (instead of 5.3%) and the effective revenue would have decreased by 4.4% (instead of 6.3%) ”.
Until October, covid-19 measures had cost 3,920.9 million euros, taking into account a reduction in revenue of 1,508.3 million euros and an increase in expenditure by 2,412.6 million euros.
The deficit in public accounting worsened by 9,267 million euros until November compared to the same period last year, totaling 8,691 million euros, due to the covid-19 pandemic, according to the DGO.