2023-07-09 08:40:14
The latest data on the Spanish economy should worry us a lot. The Government has already exceeded its public debt target for the entire year in May. The Government of Sánchez accumulates 41,000 million euros of additional debt until May and exceeds the target set by the administration for the entire year by more than 13,000 million.
Sánchez has squandered the largest fiscal and monetary stimulus in history, more than 340,000 million euros, and 79,800 million euros of European funds and, despite having profited intolerably from inflation, leaves an uncontrolled debt that has increased by 13% from 2019 for zero GDP growth. Spain closes the first half of 2023 as the country where the Government has increased public debt the most, and that Airef estimates that 50% of the extraordinary collection achieved in these years comes from refusing to deflate taxes to inflation. With this, the tax burden on citizens has increased by 21% and the tax effort is well above the European Union average.
As Ignacio Ruiz-Jarabo brilliantly explains, a worker with two children who earns the average Spanish salary (27,570 euros per year) pays 10.5% more just for personal income tax, more than 600 euros per year.
tax suffocation
Labor costs have increased by more than 11% in the legislature, the minimum contribution bases have risen by 50%, companies have seen a general increase in all the taxes they suffer until their tax burden is well above the average for the EU, according to the Institute of Economic Studies (IEE).
Sánchez and Montero repeated their lie over and over again that they would not raise taxes “for the middle and working class” – as if the rest did not work – and they have laughed in the face of their own voters with the greatest increase in pressure European Union tax rate, 21%, the largest loss in purchasing power of comparable countries, according to Eurostat, and a true widespread fiscal hack by refusing to deflate taxes for inflation. Sánchez and Díaz have taken three euros from you for every euro that they promised you – and did not give – as help. Indeed, the increase in collection due to inflation triples the cost of the supposed aid that they announced so much… and then they do not give.
It is not surprising that the Bank of Spain remembers that one in 10 households no longer has enough income to cover essential expenses. “In 2020, 7% of households did not cover essential expenses with their total gross income, a percentage that would rise to 9% in 2022.” In the Sánchez legislature, the number of those who cannot pay their essential costs increases by 376,000 households.
political spending
In that same period, Sánchez has skyrocketed political spending, which has nothing to do with health or education and pensions, by 38,000 million. The increase in the budget of the Ministry of the Presidency has been 9.6% in 2023 alone and has almost doubled since 2019. The same occurs with the budget for the 2030 Agenda (+17% only in 2023), Ecological Transition (+6, 5%, when renewables no longer need subsidies) or Territorial Policy (+14.9% in 2023).
“Ecological Transition and Demographic Challenge” accumulates a completely inflated budget of 10,371 million; “Social Rights and the 2030 Agenda”, 5,399 million; “Economic Affairs and Digital Transformation”, 4,974 million; “Presidency”, 304 million euros; “Territorial Policy”, 589 million; “Equality”, 550 million. More than 60,000 million euros per year in inefficient spending, according to the IEE. A constant waste with 22 ministries and 1,839 advisors, the highest number in democracy.
Duties for the Government after 23-J
Fiscal consolidation, whether there is a hidden deficit –which will appear– or not, cannot fall on taxpayers. There is a lot of inefficient fat in the State to cut, from ministries to advisers, travel, the Presidency, the 2030 agenda, economic affairs, duplication, unnecessary subsidies, documentaries and propaganda.
The next government has the obligation to achieve fiscal consolidation by reversing the enormous increase in political patronage spending. If this excess of unnecessary spending and the huge increase in taxes are not reversed, sanchismo will not be repealed, it will be perpetuated.
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