Pandemic costs 3.058 million euros to the state until September

“Until September, 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 831,5 million euros and an increase in expenditure of 2.226,8 million euros ”, indicates the Directorate-General for Budget in the Budget Execution Summary.

The covid-19 pandemic cost the state 3.058,3 million euros until September, due to a loss of revenue of 831,5 million and an increase in expenditure of 2.226,8 million, DGO said today.

“Until September, 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 831,5 million euros and an increase in expenditure of 2.226,8 million euros ”, indicates the Directorate-General for Budget in the Budget Execution Summary.

The impact of the covid-19 measures up to September is greater than the 2.521,7 million euros recorded up to August.

Regarding the execution until September, on the revenue side, DGO highlights the loss of contributions due to the exemption from payment of Single Social Tax (TSU) in 470 million euros under the simplified lay-off regime, support to the recovery progressive and financial incentive to normalize business activity.

Tax payment extensions, payable from the second half of the year, for a period of up to six months resulted in a loss of revenue of 2 million euros for VAT and 110,9 million euros for IRS and IRC withholdings.

On the expenditure side, the 'lay-off' was the measure with the greatest impact, with a cost of 817,7 million euros, followed by health-related expenses (331,8 million euros), namely Personal Protective Equipment (PPE) and medicines.

Expenditure on extraordinary support for the reduction of the economic activity of self-employed workers totaled 183,6 million euros and the extraordinary incentive to normalize business activity amounted to 169,5 million euros, according to DGO.

With costs below 100 million euros are the reinforcement of human resources (hiring, overtime and other allowances), with an associated expense of 88,2 million euros until September, the exceptional support to the family (82,9 million euros ), fans and other equipment for the National Health Service (67,2 million euros), among others.

Until September, casualties for prophylactic isolation cost 36,6 million euros, while the extension of the social unemployment benefit amounted to 41,2 million and the Adapt program was 27,3 million euros.

Expenditure on financial assets is still 50,3 million euros with the support line for tourism for micro-enterprises.

DGO notes that “in the absence of expenses associated with measures within the scope of covid-19, the effective expenditure of general government would have grown by 1,7% over the same period last year (instead of 5,2%) and revenue effective income would have decreased by 5,6% (instead of 6,9%) ”.

The DGO data do not include measures to support financing the economy that have no impact on budgetary accounting, “as is the case of those that are substantiated in the provision of guarantees by the State in the support lines to the Economy, as well as other measures that, even though they stem from legislative measures, they refer to the private sector, among which the moratorium granted by the banking sector, moratoriums on rents, and the impossibility for companies that provide essential services ("utilities") to suspend services due to payment breach ”.

According to budgetary execution, the deficit in the public accounts worsened by 7.767 million euros until September compared to the same period last year, totaling 5.179 million euros.

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