Sunday, 19 May 2024
BusinessCongress once again approves the Government's deficit objective, with PP and Vox...

Congress once again approves the Government’s deficit objective, with PP and Vox voting against

The Congress of Deputies has approved for the second time the stability objectives (debt and deficit) of the Government for the preparation of budgets. The rule has gone ahead with the votes of all the parties that supported the investiture and with the rejection of the PP and Vox. This vote against suggests a new rejection in the Senate that would force the Government to carry out its public accounts with another scheme, more severe with the communities and city councils.

The Ministry of Finance has once again presented the deficit objectives that Congress already approved a month ago. However, the Senate, with an absolute majority of the PP, voted against. The budget stability law of 2012 established a period of one month for the Government to resubmit the objectives for voting in both chambers.

This procedure is essential for the preparation of the General State Budgets, but also for communities and town councils. The Government sets the State’s deficit objective and distributes it among the administrations. The norm voted on this Thursday establishes a joint objective of 3%. City councils will have to comply with 0%; communities with a deficit of 0.1%; the central administration of 2.7% and Social Security, 0.2%.

Now, this stability scheme will return to the Senate. Rejection is again expected by the Upper House where the PP has an absolute majority. The party has been reluctant to approve this measure for months and takes the opportunity to charge against the Government. “We voted no to an economic and budgetary policy that impoverishes Spaniards and we voted yes to a better economic policy alternative that generates growth and employment,” said the PP deputy, José Vicente Marí Bosó, during his speech in the debate. on the objectives in the Congress of Deputies. Vox also opposes these objectives.

The rejection of the PP in the Senate will not cause the budgets to decline and, therefore, the Government will not be able to meet its objective of having new accounts for this year. The Ministry of Finance has already consulted with the State Attorney’s Office about the scenario that would open with this new rejection, which is expected in the coming days. Instead of these deficit objectives approved by Congress, the one that the Government proposed to Brussels almost a year ago in the known as the Stability Program, which it has to update every spring, would come into operation.

This alternative scheme has an identical global objective, 3%. However, the distribution between administrations is different. The town councils will have to have a surplus of 0.2% and the communities, 0.1%. This would cause six autonomous communities, four of them from the PP, which have already presented their budgets, to fail to comply with the most restrictive deficit objectives with their current accounts.

What has caused this rejection by the PP of the Government’s stability objectives is a delay of several weeks in the Government’s attempt to have budgets for this year. Initially, the objective was to have it in the first quarter, but the complexity of the negotiations and the problems with the deficit objectives have caused a rejection of several months. Meanwhile, the 2023 budgets have been extended.

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