this International Monetary Fund (IMF) does not agree with Spain’s prescriptions to combat the epidemic. inflation. Far from generalized measures, countries strong social protection systemsAs in the case of Spain, which he does not mention individually, most vulnerable groups. This assumes a critique of the 20 cents general subsidy on gasoline or caps on the gas price, as well as cuts in energy taxes (from VAT to tax) to curb the electricity surge. generation).
The international financial institution has published some on its blog. fiscal policy advice To deal with the effects of inflation on citizens. And his advice is clear: avoid tax breaks and generalized subsidies and choose concrete assistance to the most vulnerable groups.
In the published statement, the institution examines the measures implemented by different countries to try to limit the impact of the increase in fuel and food prices. Among the outstanding are reductions in excise taxes such as VAT or special taxes such as gasoline, freezing or lowering prices such as the 20 cents imposed in Spain, or reductions in other taxes such as personal income tax.
The Fund believes that such measures are not going in the right direction, as “price signals are crucial to allow supply and demand to adjust and to foster a demand response where high prices encourage people to be more energy efficient. During the pandemic, the budgets of many countries burdened with debt due to extraordinary measures” , they cannot afford to give general help partially terminated andn hands of high-income families that they would notice a much smaller impact on their own accounts.
In the Fund’s view, public support should focus on helping people. most disadvantaged familieseither by certain subsidies – as approved by the UK – or by temporarily expanding the amount of existing social programs such as supplemental income or minimum income.
The organization, led by Kristalina Georgieva, understands that general assistance is unfair because “high-income households tend to use more fuel than low-income households”, because the latter use public transport, bike or motorcycle, and take less leisure trips, which indiscriminately tend to consume gasoline. aid causes transfers from the poorest to the richest.
This point, in fact, has led to contradictions within the Government itself and with the opposition. On Monday, vice-president Yolanda Díaz proposed applying income criteria to the 20-cent gasoline subsidy and reducing public transport vouchers to 10 euros so that families without their own private car can also receive benefits.
The IMF emphasizes that the increase in fuel prices this year is much less than it should be. public accounts take a third of the extra costs. The less developed the economies in question and the weaker their states, the greater the cost to the public coffers, and the oil-exporting states bear almost 85% of the extra costs their own citizens have to pay.
These measures for the fund “replace more productive spending and reduce incentives for manufacturers and distributorsIn his view, if subsidies are required for any product, subsidizing essential foods is more important to ensure that no family is deprived of access to essential nutrition.