May 10, 2021

The fiscal authority says that the Budgets are "very similar to those of previous years" in the fiscal | Economy

The fiscal authority says that the Budgets are "very similar to those of previous years" in the fiscal | Economy

The president of the Independent Authority of Fiscal Responsibility (Airef), José Luis Escrivá, has affirmed this Tuesday that the draft General State Budgets for 2019 "Is very similar" to those of recent years in which "fiscal policy has been basically neutral" and although there are now redistributive policies. Escrivá has not made more assessments about the PGE, referring to having a period of 10 days to analyze them after which he will pronounce "in fullness".

The tax authority, which has intervened in a breakfast organized by Nueva Economía Fórum, has added, however, that "we are not deepening towards budgetary stability", insisting in the message that it is necessary "a consolidation that allows to reduce the debt to comfortable levels. " In this way he insisted on his message about the need to attack debt and structural deficits. In his opinion, no progress is made to correct the fiscal deficit, anchored at 2% of GDP, nor the debt, 40 points above "that comfortable zone of 60% of GDP".

As he remarked, "it is a level that makes us vulnerable to the possible materialization of contingent liabilities, in the face of scenarios of interest rate rises, adverse macroeconomic developments or, more in the medium term, to extraordinarily complicate the management of pressure on public spending due to the aging of the population ". And he added that "the cost of the public debt and the risk premium is systematically higher than that of France or Belgium".

Before that and after ensuring that Spain has a margin of immense improvement to approach countries in their environment in the fiscal and budgetary, has called for consensus among political forces, present virtually all in the meeting. "It is worth wondering if it really is so difficult to reach a consensus on the binding medium-term reference of convergence of public debt to 60% of GDP," he said. "There should be a meeting point between the different positions and make this issue non-partisan and once agreed a time horizon and a trajectory that anchors fiscal discipline strategies, there are many combinations of income and expenses compatible with that trajectory" , has finished.

He also highlighted the "indispensable" need for institutional strengthening at the territorial level. "It is essential to ensure that the regulatory frameworks that govern the relations between the different administrations and the institutions where these interactions take place are perceived as proper by all the actors and that the principle of institutional loyalty can be fully deployed," he emphasized. That is, simplification of fiscal rules, joint reform of the regional and local financing systems, the problem of debt sustainability and the reform of the mechanisms for setting fiscal objectives.

Escrivá insisted, on the other hand, on the recommendation to increase the effective retirement age, now in 62 years and eight months, to equate it with the theoretical one. In that sense, he recalled that every year that increases that parameter is reduced by four tenths the legal age, so that a part of spending on pensions would be compensated.


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