DREM releases, for the first time, the main aggregates of the Regional Public Administration of Madeira
The Regional Directorate of Statistics of Madeira (DREM) releases, for the first time today, a set of information regarding the main aggregates of the Regional Public Administration of Madeira for the period from 2010 to 2023. It is noted that the information for the years 2022 and 2023 is of a provisional and preliminary nature, respectively.
The accounts of the Regional Public Administration sector presented are compiled in accordance with the concepts and definitions of the European System of National and Regional Accounts 2010 (ESA 2010) and with the specific guidelines of the Manual on Government Deficit and Debt. The data presented are transmitted to Eurostat within the framework of the ESA 2010 transmission program and are consistent with the first notification of 2024 regarding the Excessive Deficit Procedure (EDP), also released today.
Regional Public Administration of Madeira recorded a positive balance in 2023, as a result of revenue growth outpacing expenditure
In 2023, the institutional sector of the Regional Public Administration of Madeira registered a net lending of 25.3 million euros, or a positive balance, whereas, in the previous year, it had presented a net borrowing of 142.1 million euros, i.e., a negative balance, corresponding to 2.4% of GDP.
The total revenue of the Regional Public Administration of Madeira amounted to 1,845.6 million euros, representing an increase of 17.8% compared to 2022 (+279.0 million euros), with current revenue growing by 17.7% (+266.3 million euros). The three major components of current revenue grew, with notable increases including a change of +33.8% in taxes on income and property, explained by an increase in the Corporate Income Tax revenue. Taxes on production and imports went up by 10.6%, while revenue from social contributions rose by 8.1%. Capital revenue increased from 61.4 million euros in 2022 to 74.0 million euros in 2023, marking a 20.6% growth compared to the previous year.
In 2023, the total expenditure of the Regional Public Administration of Madeira reached 1,820.2 million euros (1,708.7 million euros in the previous year), showing an increase of 6.5% compared to the previous year, due to the growth in current expenditure (+10.6%), whereas capital expenditure decreased by 18.6%. The increase in current expenditure was contributed by the rise in the compensation of employees (+11.7%), reflecting wage upgrades, updates in the guaranteed monthly minimum wage, and meal allowance. Additionally, there was an effect from specific updates in healthcare, some of which had retroactive impacts and were paid in 2023, as well as social benefits (except in-kind social transfers), which increased by 7.5%. Reductions were noted in other items of current expenditure, notably intermediate consumption and subsidies paid by approximately 4.8% and 33.6%, respectively. Interest expenditure before the allocation of Financial intermediation services indirectly measured (FISIM) witnessed a 37.9% growth compared to the previous year, primarily explained by the rise in interest rates. The decrease observed in capital expenditure was mainly due to the reduction in capital transfers paid (-61.3%), which the growth in Gross fixed capital formation (GFCF)(+4.8%) was insufficient to counter.
Preliminary data for 2023 reveal that the overall balance of the Regional Public Administration of Madeira improved by approximately 167.4 million euros between 2022 and 2023, resulting in a net lending of 25.3 million euros in 2023. This positive evolution stemmed from a more significant increase in revenue (+17.8%) compared to expenditure (+6.5%).
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