CEOE: The expense projected by the Government in the PGE is not justified, is a Future Mortgage

Entrepreneurs grouped into the Spanish Confederation of Business Organizations (CEOE) have warned today that the draft State Budgets of the State (PGE) for 2022

CEOE: The expense projected by the Government in the PGE is not justified, is a Future Mortgage

Entrepreneurs grouped into the Spanish Confederation of Business Organizations (CEOE) have warned today that the draft State Budgets of the State (PGE) for 2022 presented yesterday the Government has scarcely sustainable foundations from the fiscal point of view. Neither spending, "which is not justified" nor revenues, "that harm the most internationalized companies" are in accordance with an economic situation in which the intensity of recovery is in doubt.

The employer argues that, waiting to know more details, the draft budgets, on the expenditure side, "postpones the sanitation of public finances" while, for that of income "supposes an increase in fiscal pressure" . The abrupt turn that has given the economy at the end of summer with inflation that has overflowed all its forecasts does not seem to have been taken into consideration, in the opinion of entrepreneurs. Nor does the brake in the growth of the economy in the second quarter. "The government should be more prudent in its macroeconomic forecasts, since it has maintained growth of 6.5% by 2021 and 7% by 2022 despite the behavior of the economy in the second quarter, which has cooled expectations."

The PGE presented yesterday establish a level of income amounting to 232,352 million, 8% more than the almost 215,000 with which it has expected to close this year. In this sense, the employer has indicated that business pressure in Spain is 1.5 points higher than that of the EU (11.1% of GDP versus 9.6%) and the collection from Spanish companies is equivalent to 31 , 9% of total income, compared to 24.6% of the European average. Entrepreneurs are aware that, far from narrowing, the gap can grow. Hacienda has already pointed out that the corporation tax must contribute much more than the nearly 25,000 million euros it will contribute next year. Therefore, it prepares a tax reform that will be supported by the recommendations of a group of experts in the first quarter of the year.

Regarding expense, CEOE ensures that the PGE project for 2022 places it at maximum levels in many games, something that is not justified in a context of economic recovery and historical maximum debt. "We believe that this expansion of public spending compromises the sustainability of medium and long-term finance and future mortgage the stabilizing capacity of fiscal policy". Entrepreneurs further censor that the strategy of spending does not bet "decisively" for economic activities and remind that the generation of employment is also a social policy.

Updated Date: 08 October 2021, 05:00

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