The Minister of Finance, María Jesús Montero, has advanced that the public deficit closed 2020 according to the forecast estimate of "around 11.3% of GDP", with a fall in public revenue close to 7.6% as a consequence of the Covid crisis.

This has been pointed out by Montero in an interview with Europa Press, in which he has indicated that although the Executive will work for fiscal consolidation, it will continue with "countercyclical" policies and hopes to have "expansive" Budgets again in 2022, postponing the adjustment plan to when there is recovery and "required by the European Commission."

The head of the Treasury has affirmed that the figures provided by the Government for the public deficit and fall in collection will be in the estimated settings, although throughout the month of January there will be a clearer approximation, once the accounting is closed and the autonomous communities and local entities report on their public finances.

Montero has stressed that the Government has "never" abandoned the path of fiscal consolidation and recalled that for the year 2021 the largest drop in terms of the percentage of deficit recorded in a single year is expected, of around 3 points, from 11.3% of GDP to 7.7% of GDP, after having been "prudent" in the preparation of public accounts.

"All administrations have to keep in mind going on a downward curve, but the economic situation has to accompany us," Montero has indicated, to ensure that the Executive will not repeat the "mistakes" of the past by implementing cut policies that resulted in inequality.

Roadmap

For this reason, he explained that the roadmap is to continue stimulating growth with an "anti-cyclical" policy to "leave no one behind" and maintain the productive fabric and jobs, while undertaking a review of public spending so that be more efficient.

In fact, he has said that he hopes that the Budgets for the year 2022 will also be "expansive", like those of this year, although he recalled that for now the European Commission has not announced any commitment regarding a possible new suspension of the fiscal rules that year.

In this way, it has postponed the rebalancing plan whose design institutions such as AIReF or the Bank of Spain have been demanding when "economic circumstances so advise and when Brussels raises it", in order to continue with the path of fiscal consolidation .

"There will be time," he said.

The Government spokesperson has also referred to the reform of the regional financing system, which will be a "priority" of the Government for 2021 and whose work could begin as of February, in order to address the "under-financing" of some regions, but has warned that the Executive will guarantee certain fiscal "harmonization" to guarantee sufficient resources per inhabitants that allow a good provision of public services.

Financing

Thus, he has ensured that the system will be "fair" with all the territories, although he has added that "never" a financing system can respond in its entirety to the requirement of a specific territory, because it would be to the detriment of another, therefore that a "common denominator" must be sought so that "everyone" receives adequate resources and "not to turn the debate on regional financing into one of territorial grievances."

At that point, he has denounced the "interested campaigns of questioning" of certain tax figures, such as Successions and Donations or Patrimony to deteriorate them in social perception "casually" when these figures are linked to wealth and "curiously" when it affects a minor volume of citizens, using "falsehoods" such as being paid twice for the same taxable event.

In his opinion, Spain and society need a "reflection" on the most appropriate tax figures to tax wealth, for which he has advocated "legitimizing that which allows them to be more equal" and for preserving tax justice.

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  • GDP

  • European Comission

  • Spain

  • Maria Jesus Montero

  • Public deficit

  • Taxes

  • minimum salary

  • economy

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