The Government raises the 'spending ceiling' to a record of 198,221 million and maintains the deficit at 5% this year

MADRID, 26 Jul. (EUROPA PRESS) -

The Council of Ministers approved this Tuesday the non-financial spending limit, known as the 'expenditure ceiling', of the State Budget for 2023, which rises to the record figure of 198,221 million euros, which represents 1.1 % more than the previous year, including funds from the European Union.

With this step, the Executive kicks off the preparation of the latest public accounts for this legislature, which aim to consolidate economic growth and job creation, but taking into account the current complex economic scenario, marked by the war in Ukraine and escalating prices.

"The new 'expenditure ceiling' reaches a record figure, although this will not prevent us from continuing to reduce our imbalance and maintaining the investment effort", assured the Minister of Finance and Public Administration, María Jesús Montero, at the press conference after the Council of Ministers, where it has broken down the new non-financial spending limit for 2023, which for the third consecutive year is at a maximum.

Together with the approval of the 'spending ceiling', the Government has updated the deficit and debt targets. Regarding the public deficit, the Treasury has maintained its forecast, predicting a mismatch of 5% of GDP this year, and has established a reference rate of 3.9% of GDP in 2023, the same rate included in the 2022 Stability Program -2025 sent in April to Brussels. The Government's medium-term path establishes the reduction of the deficit below 3% of GDP in 2025.

As in 2020, 2021 and 2022, the European Commission has proposed that the rules that limit the public deficit and debt of the Member States continue to be suspended in 2023. The suspension of the fiscal rules, which has to be approved by the Government With the approval of the European Commission, it is protected by articles 135.4 of the Constitution and 11.3 of the Budgetary Stability Law.

Montero has anticipated that, like last year, he will ask the Congress of Deputies to certify again that it appreciates the existence of an exceptional situation that justifies the need to suspend these deficit and debt rules and thus legitimize the decision of the Government, as required by the Constitution and the Budgetary Stability Law.