Asián says that the electoral promise of CC and PP to lower the IGIC is still valid but “has been postponed” to guarantee public services
SANTA CRUZ DE TENERIFE, Oct. 31 (EUROPA PRESS) –
The Minister of Finance of the Government of the Canary Islands, Matilde Asián, registered this Tuesday in the Parliament of the Canary Islands the draft General Budget Law of the Autonomous Community for 2024, which reaches a total of 11,301 million, 11% more than the initial budget from the previous year but only 3.3% above real spending.
In his presentation to the media, he described the regional accounts as “prudent and brave” in the face of a scenario of “uncertainty” due to the lack of information from the central government, in reference to the deficit objectives or payments on account, for example. example, and the inflation scenario weighed down by the invasion of Ukraine and the conflict between Gaza and Israel.
Asián has highlighted that two thirds of the budget is oriented towards social spending, where the Health and Education departments predominate, and has justified the refusal to lower the general IGIC rate from 7% to 5% – CC and PP’s electoral promise – – in that they have preferred to choose to safeguard public services, to the point that it has been advanced that the IGIC cannot be lowered if the services are not fully guaranteed.
Among the main lines of the document, the counselor has highlighted the commitment to making a real spending budget, the 9% growth in promoting the development of productive sectors, the 9.5% increase in the Canary Islands Financing Fund Municipal, a subsidy of 9.5 million to reduce the price of fuel in the ‘green islands’ or a specific fund of 50 million for La Palma.
In spending by sections, the departments of Agriculture, Livestock and Fisheries, Territorial Policy, Social Cohesion and Water, and Tourism and Employment, are the only ones in which the budget falls, something that Asián has attributed mainly to the decline of European funds React-EU.
AGRICULTURE, LAND POLICY AND TOURISM LOSE RESOURCES
Thus, the Ministry of Narvay Quintero loses 14.3% of the funds and remains at 143.4 million, that of Manuel Miranda 6.6% to 106.4 million and the Jessica De León another 7.1% up to 238.2 million.
The counselor has also said that the Government will resort to a debt operation for 56 million to make the State’s liquidations for the years 2008 and 2009, although the archipelago will continue as one of the least indebted communities with 6,570.1 million, 11 .6% of GDP.
The budget includes 700 million more for Health, Education and Social Welfare, three departments that see their resources increase.
In the case of Health, it gained 14.8% to a total of 4,109 million – 38.2% of the accounts -, Education rose 4.4% to 2,092.7 million and Social Welfare increased by 14.8%. 4.9% to reach 715.1 million.
Regarding the tax modifications included in the budget, the counselor said the increase in tobacco products for the heated modality and vaping machines, for an amount of 3.9 million, and another increase in soft drinks for which it is expected to obtain 9, 1 million.
On the other hand, he has defended tax deductions amounting to 245 million, which include 18 million for the inheritance and donation bonus, the extension of the personal income tax deduction for inflation, valued at 177 million, reductions in the Executive’s personal income tax. previous for 57.8 million, reductions in the IGIC for trips on the same island, veterinary services or diapers or reduction for the use of industrial diesel for a value of two million.
Asián has valued the endorsement that the Independent Authority for Fiscal Responsibility (AIReF) has given to the regional accounts and has insisted that the electoral promise of lowering the IGIC to 5% “is still in force”, but has been “postponed” to prioritize the social spending.
EXPENDITURE ON PERSONNEL GROWS BY 337 MILLION
“We want to help vulnerable people so that they do not become chronic and when all that is covered, we will return to the families the effort made, it is a priority,” he said, without forgetting that they are concerned within the Government such as the average income of the Canary Islands. It moves away from the Spanish and European.
Furthermore, he highlighted that the scenario for preparing the budgets has changed because the fiscal rules are recovered, something that he insisted was not completely known, apart from the fact that the “new framework” is transferred by the EC until after the elections. June elections.
Asián has also insisted that they did not know that the acting central government “was not going to do anything” and not publish the economic figures so that the autonomous communities could prepare their own budgets.
The counselor has also pointed out that personnel expenses increase by 337 million, mainly to support the increase in staff derived from the pandemic, and the 2% increase in the salaries of public employees plus an additional 0.5% depending on the evolution of the CPI.
The increase in salaries of senior officials amounts to around four million euros, mainly due to the creation of the Department of Universities and Science.
Regarding non-financial income, the Canary Financing Block increases its collection forecast by 6.8% while the transferred taxes and fees amount to 8%, to which is added the highway agreement with 145 million more .
According to the forecasts managed by the Executive, the Canarian economy will grow by 2% next year, the unemployment rate will fall to 15% and inflation will stand at 3.2%, and the level of GDP prior to the crisis will not be will recover until the end of the year.
