The Independent Tax Authority (AIREF), institution responsible for ensuring sostenibildiad of public accounts, predicts that central administration and Social security will not achieve this year to meet its budgetary objectives of Public deficit. On contrary, it calculates that municipalities and Autonomous Communities have ample margin to reach ir objectives. The combination of both situations, explains José Luis Escrivá, will allow Spain to close year with a deficit of 2.3% of GDP, as explained by President of Airef during his appearance in Committee on Budgets of Congress. A deviation very close to target set by Brussels.More information
- Fiscal authority criticizes slow reduction in public debt
- Independent fiscal authority sees "very tight" deficit target 2.2% for 2018
- The tax authority believes that municipalities are overfunded
The Fiscal authority recalls, however, that budget hole will be somewhat deeper if public resources are taken into account to rescue broken motorways. In this case, budgetary imbalance will go to 2.5% of GDP, three tenths more than European Commission's limit.
Escrivá has analyzed economic environment before issuing an opinion on state's general budgets, whose project was approved by government a couple of weeks ago. "The Spanish economy is growing healthier than ever, but it maintains weaknesses," said Escrivá. At this point it has listed high level of public debt (close to 97% of GDP, high rate of unemployment (still around 16%) and inequality (increases difference in income) as main vulnerabilities of Spanish economy.