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Featured Iglesia Católica Ministerio de Derechos Sociales Turquía Roland Garros PP

AIReF made 11 recommendations in the second quarter that the Treasury and the Economy refused to comply with

Both Ministries argued that they were already complying with them or they were unnecessary.

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AIReF made 11 recommendations in the second quarter that the Treasury and the Economy refused to comply with

Both Ministries argued that they were already complying with them or they were unnecessary

MADRID, 28 Jul. (EUROPA PRESS) -

The Independent Authority for Fiscal Responsibility (AIReF) formulated 11 recommendations in the second quarter of the year, of which 6 were new, 1 reiterated and 4 of those considered to be active recommendations, all of them aimed at budgetary stability and reinforcing the transparency of the accounts public.

All the recommendations were addressed to the Ministry of Finance and Public Administration (MINHAFP) as the competent body for their implementation, although those related to the macroeconomic guarantee of the Stability Program were also addressed to the Ministry of Economic Affairs and Digital Transformation (MINECO).

In total, taking into account that the same recommendation can be addressed to more than one administration, 14 recommendations were issued, 11 to the Treasury and 3 to the Economy.

"Both the MINHAFP and the MINECO departed from complying with the recommendations, alleging that they were already complying with them and, in the case of the current recommendations, that they were unnecessary," AIReF said in a statement.

Specifically, AIReF formulated three new recommendations related to budget stability.

On the one hand, in relation to the structural deficit, AIReF recommended allocating to its reduction the income that materializes above what was expected and those of a temporary nature and avoiding increases in spending or reductions in income of a structural nature that do not have a also structural financing.

The MINHAFP considers that it already complies with this recommendation with the consolidation effort included in the APE. However, in AIReF's opinion, this effort is not enough to ensure compliance with the recommendation.

On the other hand, regarding the measures that the Government is adopting to fight against the energy crisis and the war in Ukraine, AIReF recommended evaluating their impact in terms of efficiency, effectiveness and redistributive impact.

In addition, it recommended that, in the event that new measures were necessary, their design should meet these criteria and establish in an explicit and quantified manner the objectives they pursue, the circumstances in which their extension would proceed, the procedure for their evaluation and, in the case of increasing the structural deficit, its source of financing.

In its response, the MINHAFP indicates that in the possible extensions of measures, it always attends to the criteria of effectiveness, efficiency and redistributive impact and time opportunity.

On the contrary, AIReF does not consider these recommendations fulfilled, "since the evaluation requires having defined in advance the objectives pursued and the indicators to measure their fulfillment".

In terms of transparency, AIReF formulated three new recommendations aimed at increasing the transparency of the execution in terms of national accounting of the Recovery, Transformation and Resilience Plan (PRTR): identify the resources and uses of the PRTR in the national accounting headings of the monthly, quarterly and year-end execution published by the IGAE; publish the details of the transfers between the Public Administrations of the different subsectors in national accounting corresponding to the PRTR and make an effort of transparency and coordination between all areas of the Public Administrations to make the information on the execution of the PRTR accessible in terms of national accounting to along the APE horizon.

The MINHAFP considers that these recommendations have been amply fulfilled. However, AIReF notes that, "regardless of the information published regarding 2021, no information is currently being published on the execution of the PRTR in national accounts referring to 2022."

On the other hand, AIReF reiterated to MINHAFP and MINECO the recommendation to provide more information on the budgetary and fiscal measures incorporated into the macroeconomic scenario in order to increase the rigor of the guarantee process.

Both Ministries deviate from its compliance arguing that the SPU 2022-2025 makes explicit the fiscal and budgetary strategy used for its preparation.

However, AIReF considers that this information is insufficient since it does not include the impact of the measures and reforms of the PRTR.

For their part, the active recommendations formulated have referred to the need to have a medium-term fiscal strategy, as well as to reinforce transparency and the exchange of information.

The main reason alleged for continuing to fail to comply with these recommendations is that they are not necessary because, either, there are already sufficient mechanisms that serve the same purpose, because they meet the requirements of the regulations, or because there is already sufficient regulation in this regard.

For its part, AIReF does not consider that the SPU, as it has been presented, is a valid document to be considered a comprehensive fiscal strategy in the medium term and considers it necessary to expand its content and that in a decentralized state such as the Spanish , the SPU also includes information broken down by subsectors, consistent with the information added for the total Public Administrations.

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