The budgetary measures introduced during the new government’s first 100 days: Proactivity in the right direction
Fecha: mayo 2012
José Félix Sanz-Sanz, Desiderio Romero-Jordán
Política presupuestaria, Consolidación fiscal, Gastos públicos, Ingresos públicos
Spanish and International Economic & Financial Otlook, SEFO, V. 1 N.º 1
In order to comply with ambitious deficit targets agreed upon with Brussels over the medium term, together with the introduction of proactive legislative structural reforms, during its first 100 days in office, the Spanish administration adopted a series of fiscal consolidation measures. Revenue enhancing measures include urgent tax increases affecting the personal income tax, property tax, and revenues from telecommunication services, as well as tax measures included in the 2012 budget related to the corporate tax, shadow income, tobacco tax, and court fees. Nevertheless, the negative impact on revenues from the economic downturn and taxpayers’ reactions to proposed tax reforms must be taken into account. Expenditure reduction measures, also contemplated both urgent measures as well as an austere 2012 budget. Cost cutting measures introduced include cuts in the area of personnel expenditures, and cost control measures in the budget, such as the establishment of an expenditure ceiling, as well as generalized cuts across the different levels of the public administration.