In 2023

Regional Public Administration of Madeira recorded a positive balance, driven by revenue growth outpacing expenditure

In 2023, the Regional Public Administration (RPA) of Madeira institutional sector registered a net lending of 24.6 million euros, indicating a positive balance. This contrasts with the previous year when there was a net borrowing of 145.6 million euros, a negative balance equivalent to 2.4% of GDP. It is important to note that current GDP figures are anchored in Base 2016, with a transition to Base 2021 expected in December 2024, when the provisional GDP for 2023 will also be released.

In 2023, Madeira’s RPA total revenue amounted to approximately 1,841.9 million euros, representing a 17.8% increase compared to 2022 (+277.7 million euros), with current revenue growing by 18.7% (+278.1 million euros). All three major components of current revenue experienced growth, notably a 34.3% increase in taxes on income and property, driven by higher revenue from corporate income tax (IRC). Taxes on production and imports grew by 10.2%, while revenue from social contributions increased by 6.4%. Capital revenue decreased slightly by 0.5%, from 77.1 million euros in 2022 to 76.8 million euros in 2023.

Total expenditure by Madeira’s RPA reached 1,817.3 million euros in 2023 (compared to 1,709.8 million euros in the previous year), reflecting a 6.3% increase due to higher current expenditure (+10.8%), while capital expenditure declined by 20.4%.

The increase in current expenditure was primarily driven by higher employee compensation (+11.1%), reflecting salary adjustments, increases in the guaranteed minimum wage, and meal allowances. This also includes specific pay updates in the healthcare sector, some with retroactive effects, and social benefits (excluding in-kind social transfers), which increased by 4.0%. Additionally, intermediate consumption rose by 17.3%, while subsidies paid out decreased by 34.6%. Interest expenses before the adjustment for Financial Intermediation Services Indirectly Measured (FISIM) increased by 27.3% compared to the previous year, largely due to rising interest rates. The reduction in capital expenditure was mainly attributed to a significant decline in capital transfers paid (-60.4%), which the modest increase in gross capital formation (+4.4%) was insufficient to offset.

The overall balance of Madeira’s RPA improved by approximately 170.2 million euros between 2022 and 2023, resulting in a financing capacity of 24.6 million euros in 2023. This positive outcome was due to a more significant increase in revenue (+17.8%) than in expenditure (+6.3%).

Compared to the figures presented in March, the 2022 data are now final, incorporating final information from all Regional Public Administration entities.

The 2023 data remains provisional. Revisions mainly reflect the incorporation of information from the Management Account, which led to an upward revision in tax revenue (IRC and IRS).

Thus, compared to the March release, the net borrowing for Madeira’s RPA in 2022 was revised to 145.6 million euros (-3.5 million euros), while the net lending for 2023 was revised to 24.6 million euros (-0.7 million euros). However, the changes in the components of revenue and expenditure were more significant. 

For more information, please refer to:

• Time Series

Back

• Prev
• Next