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Economy

Improved tax revenues: Greater increase in VAT and social security

  • 4/16/2021 9:13 AM
Improved tax revenues: Greater increase in VAT and social security

In the first three months of this year, the economy has returned to the same trajectory it had in 2019, a period which was not affected by the Covid pandemic and the effects caused by the earthquake. Revenues from taxes in the state budget suggest a revival of economic activity, where their total is about $ 3 million more than in 2019 and $ 45 million more than in January-March last year.

Signs that the recovery of economic activity has begun, are also shown in the increase of income from social security, which give signals for an increase in the labor market, although an effect comes from the legal increase of the minimum wage. Gross Value Added Tax revenue for March increased by $ 40 million, while business income tax, national tax and excise tax revenues also increased.
On the other hand, the government has increased by 100 million dollars more than in 2020 the expenditures in the state budget, a good part of which have gone in the form of operating expenditures, but the funds for public works have also had a good performance. A total of $ 112 million was used from the item of capital expenditures in the first 3 months of the year.

/Klara Ruci/