Congress reaffirms the government’s deficit target by voting against PP and Vox

The Congress of Deputies approved for the second time the government’s stability goals (debt and deficit) for preparing the budget. The rule moved forward with votes from all parties supporting the investment and rejections from PP and Vox. The no-vote signals a fresh rejection in the Senate of forcing the government to run its public accounts under a different scheme, with tougher communities and city councils.

The Treasury Department once again presented the deficit targets that Congress had already approved a month ago. However, the Senate, with an absolute PP majority, voted against it. The 2012 Budget Stability Act gave the government a one-month deadline to resubmit the targets for a vote in both houses.

This procedure is necessary for the preparation of the general state budget, as well as for communities and councils. The government sets the government deficit target and distributes it among the administrations. This Thursday’s voting norm sets a joint target of 3%. Municipalities will have to adhere to 0%; Communities with a deficit of 0.1%; Central administration 2.7% and social security 0.2%.

Now, that stability plan will go back to the Senate. The upper house, where the PP has an absolute majority, is still expected to refuse. The party has been reluctant to approve the measure for months and is using the opportunity to impeach the government. “We voted no to economic and budgetary policies that no longer attract the Spanish people and we voted yes to a better economic policy alternative that generates growth and jobs,” said PP deputy José Vicente Mari Bosso in his speech in the debate. in the Congress of Deputies. Vox also opposes these goals.

Rejecting the PP in the Senate will not result in budget cuts, and therefore the government will not meet its goal of having new accounts for this year. The Ministry of Finance has already consulted with the State Prosecutor’s Office about the scenario that will be opened by this new denial, which is expected in the coming days. Instead of these deficit targets approved by Congress, what the government proposed to Brussels almost a year ago, known as the Stability Program, will be implemented, which it must renew every spring.

This alternative scheme has an identical global target of 3%. However, the distribution varies between administrations. City councils will have a 0.2% surplus, and communities – 0.1%. This will result in six autonomous communities, four of them PPs that have already presented their budgets, failing to meet the most restrictive deficit targets for their current accounts.

What led to the PP’s rejection of the government’s stability goals is a delay of several weeks in the government’s attempt to have a budget for this year. Initially, it was targeted for the first quarter, but the complexity of the negotiations and problems with the deficit targets led to several months of denial. Meanwhile, the 2023 budget was extended.

Source: El Diario





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