In 2014 it reached 1.7% of GDP compared to a target of 1%. The deviation, seven tenths triples 2013 (just two tenths). What’s worse is that for the first time since 2011 the fiscal deficit increased autonomy (in 2013 it was 1.5% of GDP).
If in 2013 nine communities met the agreed limit in 2014 were only four: Navarra, Canary Islands, Basque Country and Galicia. Another five breached the marked stop, but at least reduced their imbalance. Aragon, Andalusia, Castilla-La Mancha, Murcia and Castile and Leon
Other autonomy increased their deficit but also be making distinctions. On one side are Asturias, Baleares, Cantabria, Madrid and La Rioja, which have equal or less than the average fiscal deficit despite the increase. Unlike the case of Catalonia and Valencia, which increased the deficit despite already among the regions with the greatest imbalances. Along with Murcia and Extremadura are the only autonomy in the fiscal deficit exceeds 2% of GDP.
The bad data for Catalonia and Valencia are the main responsible for bad overall result: if both communities are excluded is that tax deficit set of the remaining 15 was 0.9% of GDP, that is, within the limit agreed with Brussels.
It is also possible to make a less accommodating reading. The primary balance is the difference between income and non-interest expenses (ie, excluding interest payments on public debt). One year, all regions had primary deficit. This implies that all had to borrow to pay not only part of their running costs but also all the interests of their respective debts. Obviously borrow to pay interest is an unsustainable dynamic.
The fundamental cause of the economic crisis that started dating now was the reckless increase in government spending coupled with the lack of economic reforms. In the case of autonomy, financial spending did not grow by 71% between 2003 and 2009. For example, between those dates, management costs (intermediate consumption) and subsidies doubled, while social services almost tripled. The crisis showed that the level of spending was unsustainable and had cheated citizens, promising them benefits which could not be financed.
If we compare the cost of all autonomies 2014 to 2003 we see that the only items that have been set are public investment (it is now 36% lower) and international cooperation (he dropped to the half). For case management costs are 78% higher and spending on personnel is 47% higher (despite the cut in wages of civil servants, the cumulative inflation in that period is 29%).
While fell in nine communities, the overall non-financial expenditure of autonomy grew 0.6% in 2014. In particular, given its high fiscal deficit, are worrying the increases in Catalonia (+3 5%) and Valencia (+ 1.8%). But also concerned about their increase in Extremadura (+ 2.1%) to a lesser extent, since it is the community where the regional spending represents a higher proportion of GDP (24%, against an average of 15%).
Everyone can put the shades you want in relation to the particular fiscal situation in each autonomy. However, I believe that the regional deficit is a problem that should be given priority, beyond the “general anesthesia” súperexpansiva involving the ECB’s monetary policy appears to take urgent. Otherwise, as we should have learned, we have to do it again when the wind blow us against.
By Diego Barceló Larran, director of Barceló and associates (diebarcelo)
With information Expansion
www.entornointeligente.com
See also www.mundinews.com | www.eldiscoduro.com | www.tipsfemeninos.com | www.economia-venezuela.com | www.politica-venezuela.com | www.enlasgradas.com | www.cualquiervaina.com | www.espiasdecocina.com | www.videojuegosmania.com
Follow us on Twitter @ entornoi
Also you may be interested
Warning : Invalid argument supplied for foreach () in /home/entornoi/public_html/cron/widget_imagenes_portales.php on line 302
No comments:
Post a Comment