January 28, 2021

Sanchez's budgets: "harmful", "short-term" and "destructive"

Sanchez's budgets: "harmful", "short-term" and "destructive"

Double rapapolvo for the Budgets of the Government, to which you accumulate more fronts than the Napoleonic armies. If in the preceding weeks, both the Bank of Spain and the Independent Authority for Fiscal Responsibility (AIReF) accused the Executive of Pedro Sánchez of "inflating" the income item and of reducing the competitiveness of the Spanish economy, today it was the employers those who have criticized socialist accounts.

To begin with, the Circle of Businessmen affirms that the General Budgets of the State «Generate uncertainty while raising the tax burden on families and businesses, negatively impacting not only on the ability to save, consume and invest, but also on the creation of employment and competitiveness ».

On the income side, the PGEs, in the opinion of the Círculo, "present an estimate of the unrealistic collection, with an increase of non-financial income of 8.1% (up to 253,101 million euros) with respect to the liquidation forecast of 2018 and of tax revenues of 9.5%, 2.5 times more than the nominal growth of the economy".

The Circle points out that "the government's economic policy lacks strategic vision when ignoring the technological and demographic challenges that are shaping up in the medium term and the economic slowdown and uncertainties that are projected throughout 2019". For the Circle «The short-term vision of the Government» it hinders the attainment of the three objectives presented in the PGE project: "control of the public deficit, strategic change of the productive model and combat inequality".

For its part, the Institute of Economic Studies (IEE) has warned that the Government's PGE 9 are «Harmful and harmful» for the economy, with a "marked electoral character" in spending and fiscal revenues that will be "far below" the forecast, for what it believes will slow growth and employment and raise the public deficit to the environment of 2.2 % of GDP, against the objective of 1.3% of GDP. The president of the IEE, José Luis Feito, has described as "unbalanced and disequilibrating" the new tributary figures, such as the "Tobin" and "Google" rates, and has stated that, given that these PGE are "non-compliant", it would be more positive for the Spaniards to extend the current ones.


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