The next preparation of public accounts or State Budgets Requires readers to understand concepts such as: open or Public debt, by clearly differentiating them from the meanings of these terms individual and business accounts.
HE public deficit It is the difference between income and expenses for a particular year.
With public debt or government debt It is understood as a series of debts held by a State towards individuals or other countries. It requires means of obtaining financial resources from the state or any public power normally obtained through the issuance of securities or bonds. It includes external debt and domestic debt.
Public debt is not like private debt
HE debt concept For public accounts this is different than for a company or individuals. If a high level of debt for a company poses a serious threat to its survival (if the imbalance between revenues and expenses is chronic or structural), for governments this element is a means of redistribution for companies. politics. Debt can be offset by instruments such as debt instruments (bills, bonds, etc.) and is necessary for the implementation of recovery strategies. economic policy.
Debt and trust in institutions
modern monetary theory It establishes that public debt never means repayment of the entire debt. If a country has a central bank, that central bank can face debt thanks to the confidence of the markets. Although the recent economic crisis caused by the pandemic has shown that the central bank’s support and redistribution of resources are sufficient compared to 2008, this theory is disputed by orthodox economists. The deficit served to worsen the situation of the population at a time when there was inflation and there was no possibility of these prices falling.
Fiscal and Fiscal Policy Council
The government convened the Fiscal and Fiscal Policy Council (CPFF) this Monday to inform the autonomous communities on the stability targets that will serve as a reference for preparing the 2024 General State Budgets (PGE). The government in office at the time sent its 2024 budget plan to Brussels in October, which included a deficit forecast of around 3 percent for next year and a public debt ratio currently below 110 percent of GDP by 2023.
European Commission assessment
The European Commission has already given its approval to Spain’s budget project, but, as in the case of Slovakia, has called on the new Government to present an updated plan “as soon as possible” since the current plan was presented by the acting Administrator in October. , Luxembourg and the Netherlands – warned that the country would face a “very difficult” fiscal situation in 2024, with a deficit above the 3% mark and “quite high” debt.
Regional and state deficit
The plan envisages a more flexible deficit of 0.1 percent for the autonomous communities in 2024, compared to the budget balance in the Stabilization Program last April. This additional tenth margin for the autonomous communities will be borne by the Central Government, whose deficit in 2024 will be 2.9% compared to 3% in the previous estimate.
Social Vulnerability
As seen in the Stability Program, Social Security keeps the deficit planned for 2024 at 0.2%. The 0.2% surplus forecast for local organizations for next year is also maintained.