Post by account_disabled on Feb 20, 2024 5:33:22 GMT -5
The Council of Ministers has approved an unprecedented increase in the non-financial spending limit, known as the spending ceiling, which will rise above 50% in order to support the economic recovery after the crisis opened by the COVID-19 pandemic . Recently freed from the European restraint of fiscal rules - suspended until next year - the Government will trigger public spending under the assumption that the coronavirus will leave new bills pending and that it will be necessary to invest in something that the large community aid will not take long to arrive. In total, Spain aspires to receive 140,000 million euros between transfers and credits over the next 6 years, but many of its destinations have already been predetermined .
The 20,000 next year, for example, will be linked to digital transformation, environmental transformation, reindustrialization or housing rehabilitation (and must be applied in full so that they result in an increase in GDP). The mere fact of using these funds would trigger the spending ceiling initially approved for 2020 by 15.7%, which was 127,609 million euros. Read more: The 2021 budget takes its first step this Tuesday: this is what it will reveal about the severity of the recession and the distribution of European aid Due to the loss of resources invested due to the coronavirus, the Executive has worsened its macroeconomic forecasts for this year. In the end, the non-financial expenditure limit (136,779 million) will be added to the European funds (27,436 million), the extraordinary transfer to Social Security (18,396 million) and the CCAA (13,486 million) for a total expenditure ceiling of 196,097 millions of euros .
What is the spending ceiling? The spending ceiling is the colloquial name for the limit of non-financial spending, that is, those that do not come from debts and credits, and is the basis of public Middle East Phone Number List accounts and what the state will do with the money it collects from taxes. . Basically, it refers to the maximum money that city councils, autonomous communities and the central Administration will be able to spend in 2021 (not counting Social Security and the payment of Public Administration debt). This year's change After the change approved this Tuesday, the spending ceiling will be more expansive to date and will bring new features such as the suspension of the fiscal rules for deficit, debt and public spending in.
That is, the stability or deficit objectives to be met will not be updated. Read more: When the October unemployment payment is collected and how the ERTES are paid When the fiscal rules do apply, if they do not comply with them, the different administrations must present an economic adjustment plan , which usually includes spending cuts or tax increases (normally under the control of the State) to improve the situation and recover the money. . With the suspension of fiscal rules during 2021 and 2022, this will not be able to happen. Why is it important for the spending ceiling to grow? Due to the significant investments resulting from the pandemic, the Government is therefore forced to increase the money it can invest in keeping the economy afloat and give administrations some flexibility to address the crisis , both from the point of view healthcare as well as the social economy.