Tag Archives: Deficit

Deficit Ended 2011 with Deviation of 2.5 Points on PSOE Forecast

 

All the government closed 2011 with a deficit of 91.344 million. The Minister of Finance and Public Administration,Cristobal Montoro, announced that the GDP is 8.51%, compared to the 6% forecast.

At a press conference, Montoro has reported that the deficit recorded last year for the state is 5.10% of GDP (against 4.8% expected), the regions, 2.94% (compared with 1, 3% predicted) and local authorities, the 0.38% (compared to 0.30% predicted). Meanwhile, Social Security ended the year with a deficit of 995 million euros, 0.09% of GDP, while the target predicted a surplus of 0.4% of GDP.

In his view, this diversion of Social Security is “disturbing” because it is speaking of “the public pension system” and emphasized that we have to clean it up more. Montoro has indicated that these data, confirm the imbalance of public accounts that has been 2.51 percentage points higher than the fiscal consolidation target of 6% last year, committed by the Spanish Government to the European Commission. Montoro has refused to blame the deficit diversion to the regions and said it has been a lack of central government “derogation” from the financing system. “We should not blame anyone.  We are all autonomous communities”, he stressed.

In this regard, Montoro reiterated that there is a need to devise a system, to see how public services are financed independently by the administration that manages them. Montoro also stressed the importance of budgetary stability law to control the institutions and avoid a deficit and breach of targets.