Basque government approves budget guidelines for 2024, with the challenge of financial sustainability

The Basque government has updated its forecasts for the growth of the Basque economy for this year, from 1.5% set in the March review to 1.6% envisaged in the 2024 budget guidelines adopted this Tuesday. The growth forecast for next year, on the other hand, remains at the 2.1% set in March.

Economy and Finance Minister Pedro Azpiazu has announced that the executive branch is working with the expectation that the unemployment rate reduced to 8.2% this year and 7.5% in 2024. According to these projections, the number jobs created this year there will be about 11,000, another 16,000 should be added in 2024.

The Basque government has approved the guidelines that will guide the Budgets 2024, the last of the current legislature. The bills will focus on strengthening the economic recovery, ensuring sustainable development and quality employment, together with strong social policies.

In his speech after the Governing Council, Minister Azpiazu stated that the next budget should combine financial sustainability with the “colossal need” for investment to “bolster” the economic recovery.

This is reported by the Ministry of Economy and Finance sustainability of public finances It is one of the major challenges facing the Basque government, as it will have to reconcile fiscal consolidation with investment needs.

As for the health of public finances, currently the escape clause of the Stability Pactand at the time when the path of deficit and debt for the Basque Autonomous Community (CAV), it must be established in the Joint Commission of the Economic Agreement. In any case, the Basque government has put forward that it will “maximum use the margins of fiscal flexibility” until the aforementioned clause is formally deactivated.

The Executive expects to approve the budget project the 24th of October for later processing in the Basque Parliament.