The Treasury begins the 2023 Budgets with aid against price increases as a priority

The Ministry of Finance has published this Monday the order by which the drafting of the General State Budgets for next year begins, which a priori will be the last of the legislature. The cabinet led by María Jesús Montero thus begins the main process of her department and maintains as priorities for the next course maintaining measures to support the sectors most affected by the rise in prices caused by the war in Ukraine and the rise in energy. This has been shown by the Ministry in the order that has been published this Monday in the Official State Gazette.

"One of the criteria for allocating resources in public accounts will be the measures to protect consumers and the sectors most affected by the rise in prices caused by the war," says the Treasury in a press release distributed earlier this morning. Monday. “The objective of the 2023 Budget is to consolidate the economic growth and job creation that began in 2021 and continues in 2022, but taking into account the current international context marked by the impact that the invasion of Ukraine by Russia is provoking in the economy with the increase in the prices of energy and other products”, he adds.

The Ministry defends that Spain is in a solid position and that employment is at its highest level since 2008, although it recognizes that the economy is in a situation of "uncertainty". The Executive is currently drafting the Royal Decree by which the protection measures for homes and companies against rising prices will be extended. The Treasury leaves the door open for these protection measures to also be extended in the 2023 Budgets.

The ministerial order is one more step in the formalization of next year's Budgets, giving indications to the different ministries about the main lines of the public accounts. It comes after the stability programs and the macroeconomic path were sent to Brussels a little over a month ago, in which the growth and deficit forecasts for the economy are noted. The Government will draw up these new accounts with the cushion that Brussels has extended the suspension of excessive deficit procedures for another year. Treasury defends in its note that despite this, last year there was already an improvement in the deficit that occurred "without applying social cuts and that was compatible with reinforcing the Welfare State." The Executive trusts, according to the path outlined, that the deficit will reach 3% in 2025.

The Ministry has set, in addition to aid against price increases, other priorities in the main lines of the Budgets. Among them, it aims to "promote the green, fair, ecological and digital transition", in fact the accounts will have an ecological transition impact report. Another of the lines, closely linked to the current situation of energy prices, aims to "reduce the general dependence on fossil fuels", contemplating the improvement of the energy interconnection capacity. The digital transformation, modernizing the productive fabric, "strengthening the Welfare State", or guaranteeing full gender equality are other lines marked by the Government that must be reflected in the spending items of future accounts.

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