The expenses, presupposed by the budget draft for 2015 will not exceed 30.5 mln euro. This data is included in the official forecast of Andorran Government, as the Minister for Finances Jordi Cinca announced. This figure completely corresponds to the parameters, settled by international organizations: the budget shortfall won’t exceed 1.2% of GDP. At that, the amount of shortfall could be event smaller in case the Government of Andorra didn’t decide to increase social security sector payments and pension payments to governmental employees.
The growth of income level obviously confirms positive development of the economy of Andorra. The Governmental forecast also says that the budget revenue of Andorra for the first time in the recent years will demonstrate 9% growth and will make up almost 400 mln euro. This will happen thanks to the launch of new financial model that presupposes the implementation of income tax for natural persons from January 1, 2015. See the details here.
The growth will also be caused by hidden taxes (IGI, VAT analogue) –22% that corresponds to 133 mln euro. The revenues from personal taxes will also increase by 17%.
The dividends from CTRA (SA) activities are forecasted in the upcoming year. Centre de Tractament de Residus d’Andorra (the shareholders base consists of Andorran Government and energy company FEDA) deals with separation, preservation and recycling of wastes.
As for investment activity, the expected budget revenues for 2015 completely correspond to the preliminary plans of the Government and exceed a little the settled level of 50 mln. Among the investment project there is the construction of heliport for the establishment of regular air traffic with Barcelona, the improvement of road system, technical service and repairs of roads as well as the construction of new schools.
At that the growth of the consumption of goods and services remains minimal—0.51%.
The Government of Andorra intends to proceed the politics of moderate budget expenditures. Alongside with that, a significant growth (by 16.3%) of transfers is expected together with 8% growth of expenses for personnel. Jordi Cinca emphasized that the stake should be made on highly qualified specialists; it is also necessary to retain from the general growth of human resources.
It is important that the budget for 2015 doesn’t presuppose any benefits for governmental officials.