The Treasury refuses to apply the fiscal adjustment plan required by AIReF and claims that it is not the "optimal" time

• DANIEL VIAÑA

  @DanielVianaR

  Madrid

Updated on Friday, 12November2021-02: 07

• Share on Facebook

• Share on Twitter

• Send by email

Comment

• PGE The incessant cut in growth: AIReF also lowers its forecasts in a very notable way

The

required by the Independent Authority for Fiscal Responsibility (AIReF). He considers that this is not the "

" time. And although the body directed by Cristina Herrero does not even ask that it be something immediate but rather a "credible and realistic" measure in the medium and long term, the department of María Jesús Montero responds that "first it is necessary to determine the damage of the pandemic and wait the uncertainty has been reduced. ' And then, it will be seen.

This is stated in the follow-up of the recommendations made by AIReF in the third quarter, a document in which it is also stated that the Treasury estimates that «

proposing possible measures for contingent scenarios, which it considers that without a doubt they would influence the expectations and behavior of citizens and economic and social agents ”. That is, it considers that an adjustment plan is something that will have a negative impact on the country, although at the same time it highlights "its firm commitment to stability is manifested in the fiscal and economic strategy."

AIReF, evidently, sees the Treasury's response as totally "insufficient", and points out that planning such as the one required "

of the budgetary activity '.

And a good example of this is that not only the Tax Authority but also the Bank of Spain has requested a similar measure from both the Ministry and the Government itself.

Because the deficit will continue to skyrocket in the coming years, despite the reduction that the Government always sells, and because the public debt already exceeds 120% of Gross Domestic Product (GDP) and will remain at very high levels for a long time.

But in the Executive, as AIReF's evaluation shows, it has no intention of applying that "credible and realistic" plan.

Furthermore, the Fiscal Authority has more reasons to be upset with the Government.

Specifically, six, which are the recommendations that, counting the one already mentioned, has made to the Executive.

And they are also the ones that have been rejected.

Five of them to the Treasury and one to the Ministry of the Economy.

The requests are related to the sustainability of public accounts, budgetary stability and the exchange of information, and both departments have decided to reject them because they do not consider them adequate or timely.

Also to the INE

There is a seventh, which in this case was carried out to the National Statistics Institute (INE) and which is related to the timing of the publication of certain statistics. AIReF «considers that

, which are used to implement the Government's fiscal policy, incorporate the most up-to-date information possible at the time of their approval to avoid losing their validity shortly. to be approved. In other words, avoid situations like the current one from reoccurring, in which the GDP data for the second quarter showed that the government's macro table, published just a few days before, was totally out of date.

On the other hand, Statistics estimates that "it

" because "the established publication dates guarantee that the INE's national accounts operations fully comply with the principle of coherence and comparability established in the Code of Good Practices."

According to the criteria of The Trust Project

Know more

See links of interest

• La Palma volcano

• Last News

• Holidays 2021

• 2022 business calendar

• Home THE WORLD TODAY

• Podcast Economia

• How to do

• Live: Georgia - Sweden

• Greece - Spain, live

• Barça - Bitci Baskonia