Sustainable Bond Framework
.
Rebound of public finances from 2021 onwards
2020
2021
2022(f)
2023(f)
2024(f)
2025(f)
After five continuous years of fiscal surpluses (2015-2019)¹ Evolution of main fiscal indicators, % of GDP
the budget balance of the General Government turned to
negative reaching -5.8% in 2020 due to the effects of the
negative rate of growth in real terms as well as to the support
measures of a one-off nature to cope with the COVID-19
outbreak (fiscal impact: -3.4% of GDP).
In 2021 the fiscal balance recorded a significant improvement by
4.1 pp despite the continuation of support measures for
COVID-19 outbreak (fiscal impact-3.0% of GDP).
In 2022 the budget balance was positive reaching 2.3% of
GDP compared to a deficit of 1.7% of GDP the year before,
recording a significant improvement of about 4pp of GDP. This
development was attributed to the withdrawal of most of the
Covid-related measures and the continuous improvement of the
economic environment.
8.0
2015
2016
2017
6.0
4.4
2.9
4.0
2.2
2.0
0.0
-2.0
-0.1
0.3
Further improvement of the public finances are expected in
the medium term, with the fiscal position reaching a surplus of
1.7% of GDP in 2023 and 2.3% of GDP in the years 2024-2025.
-4.0
-6.0
The revenue side recorded an increase of 14.5% during the
period under review vis-à-vis the corresponding period of 2021,
mainly due to increased revenue from direct and indirect
taxes. Social contributions also contributed to the increase of
public revenue.
63
2018 دي
2019
5.7
3.5
3.8
3.6
3.6
3.0
0.1
2.3
2.3 2.3
1.7
DOO
3.3
1.9
1.3
-3.7
-1.7
-5.8
Fiscal balance
Primary balance
The expenditure side increased at a rate of 4.1% in 2022
vis-à-vis the corresponding period of 2021 with the
subsidies and interest contributed negatively to the
percentage change of expenditure whilst the social
transfers and compensation of employees contributed
positively to the percentage change of expenditure.
Note: "f" denotes forecasts by the Ministry of Finance as of Oct. 2022. All forecasts are based on assumptions and there can be no assurance they will be realised.
1 = Excluding methodological treatments relates to ex-CCB in years 2015 and 2018
Source: Ministry of Finance
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