Current expenditure of Basque Administrations –made up of the Basque Government, Provincial Councils and Municipal Administrations, together with their corresponding autonomous bodies and supra-municipal bodies- increased by 8.6% in 2006, according to EUSTAT data. Total expenditure reached 11,066.9 million euros while current income rose to 14,267.6 million euros; resulting in an annual growth rate of 12.1% with respect to 2005.

Distribution of Basque Administration Tax Revenue 2006

Source: Eustat

Tax revenue increased by 11.6% and accounted for over 90% of total current income. Among this revenue, income from corporation taxes showed the largest inter-annual growth at 16.8%. VAT revenue increased by 11.9% and income tax revenue rose by 11.1%. Municipal taxes showed similar growth (11.7%) while special taxes registered less growth at 4.7%.

In the area of current expenditure, Personnel Costs showed the lowest growth at 5.7% followed by Current Transfers at 9.6% and Other Current Expenditures (operational costs) at 9.7%. Overall, current expenditure increased by 8.6%, which given the greater rise in current income (12.1%), generated a 26.0% increase in the current operating balance for 2006.

To move from the current operating balance to the non-financial budgetary balance, it is necessary to take into account the income and expenditures of capital transactions. In 2006 capital revenue was lower than in 2005 at 12.3% and capital expenditure (real investment plus capital transfers) grew by 11.0%. As a result, the non-financial budgetary balance reached 1,333.6 million euros which is 396.4 million more than in 2005.

Consolidated Liquidation of Basque Administrations. 2006-2005

Source: Eustat

The outstanding debt of Basque Administrations reached 3,354.3 million euros in 2006, 6.7% less than in 2005. Over the last year, 442.0 million euros of the remaining debt was repaid and 199.2 million euros of new debt was incurred. Therefore, the final debt was reduced by 0.2 million euros.

The Basque Administration’s financial debt in relation to GDP was at 5.4%, almost one point less than in 2005 when it was at 6.3% of GDP.

Consolidated Data of Basque Administrations. 2006

Source: EUSTAT