The Minister of Finance of Andorra Jordi Cinca presented the state budget for 2018: it provides revenues of 425,231,642.06 euros and expences of 450,919,283 euros. Thus, the budget deficit will be about 1% of GDP or 25.69 million euros.
The increase in the expenditure part of the budget is primarily due to the increase in the number of ministries and the need to finance government programs.
In particular, the expenses of the Ministry of Justice, Social and Internal Affairs increased by 3.3 million euros compared to 2017, the Ministry of Health expences increased by 2.7 million euros, the Ministry of Education – 2.3 million euros.
Revenues increased due to a general improvement in the economic situation, increased consumption, as well as an increase in personal income tax collection.
The income tax on real estate also increased and amounted to 2.5 million euros.
Personal income tax (IRPF) increased in connection with the growth of labor incomes (+ 24%), an increase in the number of employees and an increase in the average wage.
Staff costs will grow by 2.73%, which is also due to the growth of wages.