The Independent Authority for Fiscal Responsibility (Airef) yesterday reproached the Ministry of Finance for “deviating from following” nine recommendations made by the body chaired by Cristina Herrero during the third quarter of the year. On the other hand, the autonomous communities and city councils did “commit to comply” with some of them, with the exception of the Alboraya town hall, in the Valencian Community.
One of the recommendations, referring to the preparation of budgets by all administrations, proposed establishing reference rates of growth of primary expenditure net of income measures, considering the temporary or structural nature of the income and expenses of each subsector to 2024.
The Tax Authority points out that the Treasury argues that “it deviated from the recommendation because it was in the process of discussion and negotiation of a new European legislative framework”, closed on Wednesday, but the supervisor considers “it is necessary to adopt measures for the coordination of fiscal policy and comply with the specific country recommendation for Spain for 2024, about whose formulation there is no uncertainty.”
The Airef also recommended that communities and city councils under the common regime “avoid increases in expenses or reductions in income of a structural nature financed by the temporary increase in income that will occur in 2024”, as well as “take into account the application of the rule spending” next year.
Along the same lines, but taking into account the characteristics of the provincial regime, it recommended that the Basque Country and Navarra, as well as the three provincial councils and the Bilbao city council avoid increases in expenses or reductions in income without permanent financing and take into account the application of the spending rule in 2024.
The Tax Authority assures that these recommendations were aimed at reinforcing budget stability and the spending rule, a recurring complaint of the supervisor, and that they were governed by the principle of “comply or explain” its recommendations, which is the main tool it has. the institution to fulfill its mandate. In short, Airef defends promoting a constructive and transparent dialogue with public administrations.
