Provisional consolidated implementation of the Basque government in 2021

The Basque government has reached a budget implementation of 97.8% and a surplus of 605 million in 2021, leaving it with a remaining treasury of 1,877 million euros to face the situation of uncertainty caused by the war in Ukraine and its economic consequences. to offer.

Economy and Finance Minister Pedro Azpiazu announced this Thursday the level of preliminary budget implementation corresponding to 2021, an “atypical” year in terms of revenue and expenditure.

The preliminary surplus for 2021 in national accounting terms was €605 million. With this amount and after deducting the remainder of other public bodies and doubtful collection rights, the available remainder amounts to the aforementioned 1,877 million.

According to Azpiazu, this amount represents a “good mattress” to face every “hit and miss” in the future, as well as the “uncertain prospects” caused by the Russian invasion of Ukraine.

A “significant” part of this remaining treasury will be used to finance the Strategic Investment Plan for the Basque Country 2022-2024 presented yesterday by the Lehendakari, Iñigo Urkullu and the three general deputies and which provides for a multi-year investment of almost 529 million euros .

In addition, with this amount it will be possible to cope with a hypothetical drop in the expected collection for this year, something that Azpiazu does not think will happen because the predictions made are “very conservative” to deal with “solid” budgets.

In terms of budget implementation last year, the 100% in the Ministry of Health stands out, 99% in the Ministry of Education and 91% in the Ministry of Equality, Justice and Social Policy.

According to Azpiazu, these data show that the programs corresponding to the Basque model of social protection, based on health, education and social protection, have been “practically fully implemented”.

In terms of revenues, the contributions from the historic areas amounted to EUR 10,830 million; state covid funds up to 740 million; income from the Recovery and Resilience Mechanism 344 million, and the remainder from non-financial income amounting to 650 million.

The outstanding debt as at December 31, 2021 amounted to 1,172 million euros, an amount that is almost 400 million more than at the end of 2020.

Do you remember one of the elements that have had the greatest impact on the budget from 2021 is the plan covidthe expenditure of which amounted to approximately 740 million euros last year, compared to 664 million euros in 2020.

Of the amount of the program over the two years (1,404 million euros), Osakidetza took the largest share, with 335 million euros, of which 175 million personnel costs, followed by Education, with 127.7 million, of which 74 staff in public centers.

In addition, aid to sectors affected by the pandemic had a major budgetary impact last year, with €95 million in direct support to the self-employed and businesses, €62 million (22 more than the year before) to support companies in the tourism sector, trade and consumption, the 14.2 million to support culture and the 32 million to support other sectors.

Social assistance to individuals and households amounted to 31 million euros under this covid program, transport financing at 15 million and the rest of the current expenditure within this program at 25.6 million.

Azpiazu recalled that last year the Action Program in Preferred Action Zones worth EUR 180 million and the Extraordinary Investment Program worth EUR 250 million were also approved.

In total, of the 1,300 million euros of the investment chapters included in the budget of the Basque government, 1,077 million euros have been implemented.

The counselor explained that the amounts of the posts not implemented in 2021 have been added to this year’s budget in order to continue with the projects proposed by the various departments of the College.

Adjustment of wages to the CPI

Azpiazu, has asked for wages to be adjusted in a “slow and moderate” manner to the current CPI, as there is a “significant” risk that, if all linked to the 9.8% increase recorded in March , higher inflation derived from salaries itself.

In this sense, and after recognizing that the escalation of inflation is “a problem”, he has asked for “rest” and taking into account the situation of the underlying inflation, which is around 3.4, and where energy prices do not include or unprocessed food.

Pedro Azpiazu recalled that forecasts generally indicated inflation had been “more cyclical” in the recent period, but the outbreak of the war in Ukraine helped them reach that figure of 9.8%, a percentage that is “very important”.

In any case, he stressed that 66% of this increase is driven by energy prices and is unresponsive to underlying inflation, “which is the most difficult to solve and the longest-lasting”.