The Government once again approves the deficit path after the PP veto

The Government once again approves the deficit path after the PP veto


This Tuesday, the Council of Ministers has once again ratified the budget stability and public debt objectives for the period 2024-2026, along with the spending limit intended for the preparation of the draft General State Budgets (PGE) for 2024. This approval It was necessary due to the veto of the absolute majority of the PP in the Senate the previous week, which rejected the objectives proposed by the Government. Consequently, it was necessary to re-validate the fiscal path through the Council of Ministers and submit it again to the parliamentary process.

“We continue working without wasting a minute to have budgets as soon as possible that allow our country to continue on this path of growth and such powerful positive creation of employment,” defended the Government spokesperson and Minister of Education, Vocational Training and Sports, Pilar Alegría, at the press conference after the Council of Ministers.

If the objectives are not approved for the second time, according to a report from the State Attorney’s Office, the budget stability objectives would be those established in the Stability Program submitted to the European Commission last Aprilwhich are more rigorous for the autonomous communities and city councils.

The PP has criticized this “non-existent report” from the State Attorney’s Office mentioned by the Ministry of Finance, which guarantees the approval procedure for public budgets in 2024. However, sources from the ministry led by María Jesús Montero assure that this report will be announced in case the PP rejects the objectives again for the second time.

3% deficit in 2024

Despite this, the Government intends to approve the Budget law for the year 2024 during the first half of the year, at a time characterized for the revival of European tax rules.

To this end, the non-financial spending limit, known as the spending ceiling, of the State Budget for 2024 has been re-approved. which amounts to 199,120 million euros0.5% more than the previous year, including funds from the European Union.

In the last meeting of the Fiscal Policy Council with the autonomous communities, the Ministry of Finance proposed a deficit of 3% in 2024 for all administrations, 2.7% in 2025 and 2.5% in 2026.

In the case of the autonomies, a deficit target of 0.1% was established for 2024. For 2025 and 2026, communities will seek to achieve budget balance. Regarding local entities, the budget balance (0%) was also agreed from 2024 to 2026, while for Social Security, the deficit was set at 0.2% for 2024, at 0.1% for 2025 and at 0% by 2026.

More demanding objectives

However, if these stability objectives were rejected for the second time in the Senate and those established in April came into force, The autonomous communities would be forced to comply with budget stability this yearwhile the town councils would aim for a surplus of 0.2%, which would imply a smaller margin for the spending of both administrations.

“In front of us we have an opposition that has decided not to build, to be an obstacle and harm even the citizens of the autonomous communities where he governs and we are going to continue betting on dialogue and agreement,” Pilar Alegría assured.

In the event that the Cortes Generales definitively approve the objectives proposed by the Government, it would be necessary to convene the Fiscal and Financial Policy Council again. However, if those established in the April Stability Program, which are more restrictive, are finally applied, said meeting would not take place.

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