Treasury closes in October the collection planned for the entire year

Never before had the administrations entered so much money.

Thomas Osborne
Thomas Osborne
30 November 2022 Wednesday 08:40
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Treasury closes in October the collection planned for the entire year

Never before had the administrations entered so much money. The forecasts are being pulverized month by month. In October, the collection reached 223,695 million euros, just 9,000 million from the forecast set by the Ministry of Finance in the general budgets, 232,352 million, a figure that Minister María Jesús Montero already described as "prudent" at that time. In the same month last year, the collection was 191,410 million, so the growth has been 16.9%.

The rate of increase in income is constant and is due to several factors, not just inflation. The collection is going at a historic rate and the Government has enough margin. This march could even beat the tax settlement advance for 2022 reflected in next year's budgets: 244,072 million. Gross revenues grew 17% compared to September and tax revenues, 11.7%. Only last month the Treasury collected 41,864 million.

The main features that cause these results are several, indicates the Tax Agency in its own monthly document. Firstly, the growth in VAT collection. Until October it increased by 17.9%, well above the increase in inflation in October and despite the reductions in the tax related to electricity and gas approved by the Government. In second place, personal income tax, which maintains a growth rate of 15.8%. Between both taxes, the Treasury has already entered a total of 167,000 million so far this year.

Corporate tax also maintains a strong growth due to the income corresponding to the liquidations of the financial year 2021. Finally, it is worth noting the increase in installment payments.

"The collection of the month of October is the most important of the year, when joining the usual monthly declarations, the declarations corresponding to the third quarter of withholdings, payments on account and VAT of SMEs and the second payment on account of Corporation Tax" , highlights the Treasury.

With these numbers, the Treasury has already exceeded the extra collection expected for 2022. The Ministry calculated an additional 30,000 million as a result of inflation, essentially, and the proper functioning of the labor market. Today it already has 32,000 million more to expand and improve the anti-inflation shield, among other issues.

This good progress in tax collection is allowing the Treasury to reduce the public deficit. In the first nine months of the year, it fell by 63.5%, to stand at 20,946 million euros, 1.6% of GDP, according to the Ministry's own budget execution data.