Tax revenues and their comparison with the Budget

In the whole of 2023, a positive deviation of tax revenues was recorded with respect to the Budget valued at 9,154 million ( Table 1.7 ), as a consequence of the positive deviation of 8,085 million more in gross revenues and the realization of 1,069 million less in returns.

When properly assessing the positive deviation, it must be taken into account that at the time of presenting the Budgets, neither the extension of the measures on electricity and gas nor the reduction in food rates were approved, which, as has been said, they represented a loss of income of around 2.4 billion. In exchange, no income was included from the Temporary Solidarity Tax of Great Fortunes, which had not yet been approved at the time of the presentation of the Budget Project.

In the Personal Income Tax income accumulated higher than expected in the amount of 7,158 million, 6.3% of the budgeted collection. The cause of such a positive deviation was the better evolution of employment and average salaries compared to what was expected in the macroeconomic scenario of the previous Budgets (the forecasts were made with a growth in the remuneration of employees for 2023 of 3 .9% compared to the 8.8% increase finally achieved).

The collection of Corporate Tax was higher by 6,541 million, almost 23% more than budgeted. The companies' profits were better than expected, both in 2023 (which caused payments to be higher than expected) and in 2022 (which improved the expectations that existed when preparing the accounts on income from the annual declaration).

Collection from VAT at the end of 2023 was 2,184 million less than budgeted, but if the impact of the extension of the measures on electricity and gas and the reduction of the rates on food, not included in the Budgets, the collection would have been slightly higher than expected.

The results in Excise Taxes were worse than those projected in the 2023 Budgets. The collection was 1,987 million below expectations. The two main causes of the deviation were the extension of the rate reduction in the Electricity Tax (1,177 million less than budgeted) and the low growth of the Hydrocarbons Tax (1,072 million less).

In the rest of the income, three concepts stand out: the negative deviation in environmental taxation (-1,164 million) as the suspension of the Tax on the Value of Electrical Energy Production is maintained in 2023 within the set of measures on the electrical system; the positive deviation in the other income of Chapter I, due to the incidence of the new Temporary Solidarity Tax of Great Fortunes, for which 623 million were collected; and the positive deviation in the Non-Resident Income Tax (537 million), due to the positive evolution of withholdings and payments on account.