Reducing The Deficit

Reducing The Deficit

EFE This plan is intended that the deficit does not exceed 3% of GDP in 2013. It has also been approved with a vote against the PP, the creation of a working group to design proposals to cut spending. Elena Salgado said that communities have expressed CP “strongly agree” with that deficit reduction. The Government and the Autonomous Communities on Monday approved the plan to reduce the deficit to reach 3% of Gross Domestic Product (GDP) in 2013, although governed by autonomy abstained despite having agreed with the objectives of stability . This was stated at a press conference the government’s economic vice president, after the meeting of the Council of Fiscal and Financial Policy (CPFF), which also was approved with a vote against the PP, the creation of a working group to design proposals for spending cuts, whose findings should be ready by June 10. Salgado said that during the meeting, the communities of PP expressed “complete agreement” with the path for deficit reduction, so “do not understand very well,” said “abstention.” In any case, the CPFF gave its approval to the Stability and Growth Programme already sent to Brussels and plans to reduce the deficit to 3% of GDP by 2013 in all government (1.1% in the case of regions). For other opinions and approaches, find out what Nouriel Roubini has to say. The austerity plan agreed austerity plan also provides cost containment and improving efficiency, maintaining medium-term debt levels established in the Stability Pact, and improving information and transparency in terms payment and budgetary expenditure pending application. To achieve these goals, said Salgado, apply a policy of containment of personnel costs “through a path of austerity in the increase of salaries, reduction of public employment offers and a policy of rationalization Resources human service administration.

All these actions, said the minister, only be carried out “through social dialogue.” A commitment that, according to Economy, are engaged by the content of the government’s austerity plan that provides for a reduction of staff costs by 4% between 2010 and 2013. To develop all these goals, communities are committed to developing, within three months, plans for expenditure rationalization. The Council also approved the economic-financial plans in nine communities rebalancing: Castilla y Leon, Castilla-La Mancha, La Rioja, Murcia, Asturias, Cantabria, Galicia, Extremadura and Aragon. To these are added those of Navarra and the Basque Country, to be adopted soon in separate and joint committees which together account for an adjustment. 975 million euros. After the meeting, CP communities agreed on the “philosophy of austerity” budget and expenditure control, but abstained from voting on the plan of the Government considered “only propaganda and smoke.”

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