• Economic Crisis: The Treasury activates the EU safeguard clause and suspends all fiscal rules for 2020 and 2021

  • Taxes: AIReF does not endorse the VAT increase on education and private health planned by the Government

The Minister of Finance, María Jesús Montero, has offered the autonomous communities

a non-binding deficit path of 2.2% of GDP for next year

.

As EL MUNDO has learned, the Government spokesperson has also proposed this figure in the Fiscal and Financial Policy Council that is being held this Monday.

It is a reference data so that the regions can prepare their budgets but not mandatory, since the Government has suspended all fiscal rules for this year and the next after activating the EU safeguard clause.

This means that "the stability and public debt objectives of 2020 and 2021 remain without effect and the spending rule for those years will not be applied either."

In addition, Montero estimates that the deficit registered by the communities this year is 0.6%, despite the funds that the Government has already provided to the regions.

The meeting of the Fiscal Policy Council, which had not occurred since January, will be followed tomorrow by the approval of the spending ceiling and the update of the macroeconomic picture as part of the preparation and processing of the General State Budgets (PGE).

In its new estimates, the government will foreseeably lower its growth estimate,

with a projected collapse that will exceed 10%

.

Until now, the official forecast was 9.2%.

In these accounts, the Government plans to include different tax measures that could include increases in VAT.

Montero and Nacho Álvarez, the head of the Podemos Economy, have worked based on the recommendations made by the Independent Authority for Fiscal Responsibility (AIReF).

The agency recommends gradually ending reduced and super-reduced rates, in addition to comprehensively reforming the taxation of pension plans as it considers them "regressive."

What the AIReF does not recommend, on the other hand, is to end the exemption enjoyed by private education and health, something that the Government is also considering. "The evaluation shows an inconclusive result since the higher income obtained by the State As a result of the elimination of the benefit, it could be offset by a higher cost, if a high proportion of the demand now satisfied by the private sector were transferred to the public sector, "says AIReF in its analysis of the tax benefits.

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