Román Rodríguez sees an amendment to the totality as “difficult” and calls the cost of personnel “bearable”, 30% more in four years
SANTA CRUZ DE TENERIFE, 31 Oct. (EUROPE PRESS) –
The Vice President and Minister of Finance of the Government of the Canary Islands, Román Rodríguez, presented this Monday in Parliament the 2023 budget bill that includes a total of 10,180.7 million, 11.9% more than this year and 29.6% more than in 2019 –which means 1,567 million more in social spending alone–.
In a press conference after delivering the document to the President of Parliament, Gustavo Matos, Rodríguez highlighted the “social orientation” of the regional accounts, the last of the Legislature, the protection of the productive sectors and the promotion of investment with a design “rigorous and solvent”.
The counselor has boasted that the four-party has not left anyone “by the wayside” although he has recognized that they cannot perform “miracles” either after having passed a pandemic, zero tourism, a volcanic eruption and now an inflation crisis.
Thus, it has had a special impact on the growth of the Canary Islands Health Service with 3,793 million, 331.7 million more; Education, which earns 189 million to add 2,326 million –4.8% of the estimated GDP–; Social Rights, which rose 15.38% to 669 million; Ecological Transition, department that rises the most with 20.71% more to reach 205.8 million and Economy (+19.1%), which reaches 121.2 million.
Rodríguez, who has taken advantage of his appearance to compare the four budgets of the ‘Pact of Las Flores’, has detailed that in the last four years social spending has grown by 9.46% to 7,478 million; productive investment 27.1% to 1,764 million and support for productive sectors 18.8% to reach 695 million.
In this way, he highlighted that Health earns 787 million in four years (+26.2%), Education, 573 million (+32.7%) and Social Rights 207 million (+44.7%).
In the other chapters, it has influenced the rise of 115% in the Ministry of Ecological Transition, which stands at 250.8 million after four years; Agriculture, with an increase of 68% to 88.9 million and Tourism, with growth of 77.8% to reach 173 million.
In addition, spending per inhabitant grew by almost 1,000 euros in four years (+27.7%) and investment per inhabitant by 25.8%, to 638 euros.
As for the revenue chapter, direct taxes will raise 15.1% more up to 1,992 million, while indirect taxes will rise 15.9% to 1,804.2 million and state revenues increase 23.4% thanks to the regional financing system.
Although the counselor has admitted the scenario of economic “uncertainty” for the next financial year, he has once again closed the door to the reduction of the IGIC, because it affects the collection of councils and town councils and the “stumble” of the United Kingdom, with the “speech irresponsible” statement by former Prime Minister Liz Truss endorses her arguments for progressive fiscal policy.
“WE ARE NOT GOING TO TOUCH THE IGIC”
“We are not going to touch the IGIC”, he clarified -beyond what has been done with fuel, sanitary material and in La Palma- stressing that inflation is a “structural and complex” problem and that, in all case, it is necessary to promote new taxes on banks or electricity companies that have presented “shameful” economic results these days and the right-wingers have not said a peep.
What Rodríguez has done is defend the fiscal adjustment included in the 2023 budgets that will alleviate the impact of inflation on medium and low incomes amounting to 100 million, at a rate of 105 euros per taxpayer and comparing it with the 57 euros of savings from Madrid and the 56.4 euros from Andalusia.
With effect from January 1, 2022 and therefore intended for the next Income Tax campaign, there will be an extraordinary deduction for the rise in prices, the increase in current deductions and the expansion of the taxable base of the first four regional sections of the Personal income tax to pay for real income and not nominal income.
By virtue of the budget, a deduction of 225 euros is set for the tax base of up to 20,000 euros; 175 euros for bases between 20,000 and 25,000 euros and 125 euros between 25,000 and 30,000 euros.
Regarding the expenses chapter, the personnel item rose 8.4% to 4,120.5 million –322.1 million– mainly due to the consolidation of workers in Health and Education after the pandemic and the increase in remuneration of workers –1.5% this year and 2.4% in 2023– that the Government estimates at more than 170 million.
Public debt soars this year by 111% to 48.3 million, 25.4 million more, although in comparison with 2019 it falls 40.13% to -32.3 million less–.
The counselor has commented that this spending structure is “bearable” for the Autonomous Community and has even advanced that it should “grow more”, especially in the area of general administration to be able to correctly execute the budget investments.
Real investments also grew by 32.2% and stood at 975.2 million and capital transfers by 21.4% to 788.8 million.
160 MILLION FOR LA PALMA
With regard to La Palma, Rodríguez has defended the “unequivocal commitment” of the Government with the reconstruction of the island because after the 100 million authorized in the year of 2022 for next year another 160 million will come, four times more than what the PGE.
Rodríguez has framed these accounts in an uncertain international context derived from the impact of inflation and the Russian invasion of Ukraine and the regional Executive has opted for the most pessimistic scenario that sets GDP growth on the islands at 1.3% for the next year, an unemployment rate that will climb to 19.4% and inflation that would drop to 3.7%.
On the political level, he has commented that now the processing of the accounts is beginning in the regional Chamber and he sees it as “difficult” for an amendment to be presented to the entirety, although he leaves that initiative open to the opposition groups.
He has promised dialogue with the parliamentary groups although an amendment to the whole is “not justified” and believes that in the process of partial amendments they will be “more generous” than other governments and will incorporate opposition parties.
In the act of delivering the budget, Matos recalled that from the parliamentary point of view, “this is the most important moment of the year, since it is the most important law that the Chamber will debate” to the point that the activity will be very strong until the end of the year.
PROCESSING SCHEDULE
The document was approved in the Governing Council last Monday and now begins its processing in the Chamber to be presented by areas in the Budget and Treasury Commission on November 3, 4 and 7 in sessions at 10:00, 12:00, 16:00 and 18:00. hours.
The deadline for submitting amendments to the entirety will close on Monday, November 21 at 10:00 a.m. and they will be qualified by the Board of the Chamber that same day from 11:00 a.m.
The first reading debate will take place on Wednesday, November 23 and the period for submitting amendments to the articles will close on Tuesday, November 29 at 10:00. The Table of the Committee on Budgets and Finance will proceed to its qualification on Thursday, December 1 from 9:45 am.
The plenary session for the final debate on the Budget Bill will be held on December 20 and 21, the session with which the current session period closes.
