HE spending ceilingWhat the government approved this Tuesday is the one-year statutory budget credit limit. Because, the maximum expenditure that all public administrations can make. Once forwarded to the Fiscal and Fiscal Policy Council (CPFF), autonomous communitiesThe Cabinet approved this on Tuesday.
This figure shows the total spending limit, macroeconomic picturedrawer growth, inflation or budget deficit context It represents the starting signal for the preparation of accounts on which the public accounts should be built. 2024 General State Budgets. The figure for 2023 was 198.221 million, an increase of 1.1% compared to 2022. Excluding European ‘Next Generation’ funding sources, this figure increased by 1.9% to 173.065 million. This also included a $19.888 million transfer to Social Security. According to the spending ceiling approved by the Council of Ministers, the figure for 2022 was 196.142 million. 2021 was the year that made a big leap and reached a historic level of 196,097 million, thanks to approximately 26,000 million provided by European ‘Next Generation’ funds, which were included for the first time.
What does it include?
The spending cap includes: non-financial expensesso, Those related to debt or loan payment or Social Security are excluded.. This amount is the maximum amount that city councils, autonomous communities and central government can spend. The 2021 approval is the highest in history, including some aid from ‘Next Generation’ European funds. Thanks to these resources, the spending ceiling that year increased by 53.7 percent to 196 billion 97 million euros, and new records were broken one after another. In fact, the homogeneously comparable expense ceiling for 2021 compared to the previous year was 136,779 million euros, an increase of 7.2%. However, when extraordinary transfers to the autonomous communities and Social Security are included, this figure increased by 32.3% to 168 billion 661 million, and with approximately 26 billion euros from European funds, it increased by 53.7 percent to 196 billion 97 million euros. The same happened in 2022: Excluding European funds, it increased slightly, reaching 169 billion 787 million. In addition, a transfer of 18 million 396 million liras was added to SSI. And finally, 25,622 million from European funds, in addition to 733 million from the React fund going to Health.
How to edit?
The expenditure ceiling was included in organic law No. 2/2012 of 27 April. Budget stability and financial sustainabilityApproved by the PP Government. Article 30 of this regulation is the article that regulates it and stipulates that it must be approved by the Government before 1 August of each year. This time it is held in December because there were general elections on July 23. The law in question also states that the Ministry of Finance will be the one to inform the Finance and Fiscal Policy Council about the non-financial expenditure limit of the State Budget.
The norm also includes the budget stability path in Article 15, which also includes the budget stability path. debt And open—. Unlike the spending cap, in this case it is clearly stated that it must be passed by Congress – “the Congress of Deputies and the Senate will decide on the approval or rejection of the targets proposed by the Government”, as the standard states. Finance Minister María Jesús Montero warned yesterday that if the PP vetoes this in the upper house, it could reduce the spending capacity of the autonomies, including the ones it governs, and on the other hand increase the spending capacity of the centre. management had to implement the targets set last April. In any event, he believes he will be able to approve the accounts in the first quarter of next year.As announced in an interview in El Periódico de Catalunya from the group Prensa Ibérica.
They did not apply for 2021 and 2022 Fiscal rules regarding deficit, debt and public spendingAs authorized by Brussels to combat the effects of the pandemic. The same thing happened for 2023. Even though there were reference rates, that didn’t mean there wasn’t a deficit target to be reached. It is planned that fiscal rules will come into force again by 2024 and the gap granted to autonomy will be closed. 0.1% of gross domestic product (GDP)), instead of the originally planned budget balance. For local entities, instead of a surplus of 0.2% of GDP, budget balance and these changes are passed on to the central administration and should reach 2.7% of GDP instead of 3%. 0.2% of GDP was set for security. These targets coincide with the reference rates that the incumbent Government sent to Brussels on 15 October. These are proposals that Montero warned would not be implemented if the PP vetoed them in the Senate.
How is the spending ceiling calculated?
After making an estimate of the revenue it will obtain from collecting taxes and fees and other means of providing resources, the Ministry of Finance makes an estimate of how much the administrations can spend, taking into account the current budget deficit target (3%). GDP for all administrations), that is, the difference between expenses and revenues and the so-called spending rulei.e. 2.6%. In addition to revenues from taxes or asset sales in the budgets until 2021 and 2026, european funds.