The Tax and Customs Administration estimates the costs of the new anti-crisis plan at 7,000 million


The institution chaired by Cristina Herrero will lower its forecasts in the face of the worst estimates for consumption

The Independent Authority for Fiscal Responsibility (AIReF) has estimated the cost of the latest decree-law approved by the government to extend the economic response to the energy crisis at EUR 6,989 million, which as a whole represents a 1 increase in the government deficit. represents. % of GDP.

This was stated by its chair, Cristina Herrero, during her appearance before the Finance and Civil Service Commission of Congress, which she attended Monday to report on the report on the 2022-2025 stability program update.

In total, AIReF quantifies the extension of the tax cuts on electricity, extended by the reduction of five additional points, to 5%, of the VAT levied on the electricity bill to 1,772 million euros of lost revenue.

In this calculation, this body does not take into account the suspension of the tax on the value of electrical energy production (IVPEE), of 7% that the companies bore, as it has a neutral impact in terms of deficit because it is an income allocated to cover the tariff shortfall with the electrical system.

Of the remaining 5,217 million euros, AIReF estimates the extension of the bonus of 20 cents per liter of fuel at 3,465 million, the amount for aid to individuals is 1,257 million –540 million direct aid, framing the check to families for the cost of inflation and 495 million for sector aid.

While the governmental scenario proposes a convergence of the deficit towards the threshold of the Stability Pact (3% of GDP) in 2025 and a path towards debt reduction, AIReF believes that there are still elements recommending a medium-term strategy that strengthens the underlying position of public finances and reduce vulnerability to adverse environments. It therefore maintains its recommendation to the Ministry of Finance to adopt a medium-term fiscal strategy that serves as a fiscal guideline and realistically and credibly ensures the financial sustainability of public administrations.

In this sense, Cristina Herrero recalled that sustainability is at the heart of the ECOFIN guidelines. Although the quantitative rules have been replaced by guidelines, certain quantitative elements have already been included by 2023 that point to adjustment paths after 2023. In particular, Spain has been recommended a prudent fiscal path with current expenditure growth with national financing below the national budget. potential GDP that, if applied, would lead to a deficit below AIReF and government projections. After 2023, a credible and gradual debt reduction path is recommended.

On the other hand, AIReF makes a new recommendation on the need to allocate revenues that exceed expectations and that are of a temporary nature in order to accelerate the necessary reduction in the structural deficit and avoid increases in expenditure or income reductions of a structural nature that have no structural financing. And one more recommendation on the importance of evaluating the impact of the measures already taken in terms of efficiency, effectiveness and redistributive impact before deciding, if necessary, on their possible extension.

Source: La Verdad


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