Friday, September 29, 2023

A broad budget but with a zero deficit thanks to additional income from inflation

The PP government is preparing the next accounts with a view to the financial balance in which spending will grow, despite the reduction of 600 million, and will exceed 2023

The budgets of the Junta de Andalucía for the next year 2024 will exceed 45.6 billion euros than what is currently implemented and will be approved before the end of the year without major problems, thank you enough absolute majority which the Popular Party enjoyed.

The team of the General Secretariat of Budgets of the Ministry of Economy, Finance and European Funds has been working for months on the design of the accounts and on the formulation of the most important law that, every year, is submitted for the approval of the regional Parliament. The idea, according to sources from the department led by Carolina España, is that at the end of October The budget reached the table of the Council of Government and, from there, the deadlines until the parliamentary approval, probably before Christmas.

Until now, almost no details of the project they are shaping in Torre Triana have emerged, but the sources consulted are sure that the global amount will once again exceed the previous figures. In other words, even if it is for the minimum, the executive will be able to sell that it is a wide budget and record, where, once again, the largest allocation is in health, education and social policies, where the PP is the champion.

Those who know the process well say these are the most difficult budgets to balance. Not because of the availability of resources or the necessary support, that is assured, but because of political and financial uncertainty currently, with a central government in office, without knowing the forecasts for the next year and, moreover, without estimating the transfers that may come from the State and where the majority of income.

Another of the uncertainties that outline a scenario full of unknowns is one that refers to spending rules, to zero deficit. It is not known, at this point, if these rules will be withdrawn and, therefore, the tap deficit will be cut, which in 2023 is allowed up to 0.3%. It depends, first of all, on the European Union, and then on the path of fiscal consolidation established by the central government.

However, Economic sources point out, the executive of Juanma Moreno chose to continue and not wait, where he made his own estimates of income and focused his views on the future. zero deficit. In other words, in the balance between income and expenses.

About 2023 accounts, it represents a 0.3% cut or, in other words, 600 million euros of debt that Andalusia will not have next year.

More transfers

Despite this, they say from the Economy, the budget is bigger because more transfers from the State are expected than this year. Especially through taxes such as VAT, whose collection at the national level increased in 2022 precisely because of inflation. And the transfers to the autonomous communities are calculated based on what was received two years ago, which means that the amount to be transferred to Andalusia, like other autonomies, will depend on what was collected last year, which is a record.

the inflation Therefore, it will allow us to square the circle that includes budgets with cuts and zero deficits while being broad and with greater spending.

Also playing in favor of Andalusia is the fact that Andalusia closes with a reference figure of -0.68%, while there are autonomous communities that will have to make a greater adjustment if the zero deficit is imposed, especially already those who have problems with the same underfinancing, such as Murcia, Valencia and Castilla La Mancha. In the case of Valencia, for example, closed 2022 with a deficit of 3.1%, five times more is Andalusia.

It was on June 6 when the Governing Council learned of the publication of the budget preparation order for 2024, the first formal step for the preparation of accounts of the autonomous community for the following year. The order was published in the Official Gazette of the Junta de Andalucía on May 31.

Nation World News Desk
Nation World News Desk
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