Monday, December 11, 2023

The 2024 accounts will consolidate the tax cuts already applied in Andalusia

The 2024 accounts will consolidate the “tax reductions of previous years” that “mean savings of more than 900 million euros for Andalusian families, SMEs, and companies, contributing to the dynamic economic development of Andalusia”, as stated in the preliminary draft law on the budget of the autonomous community.

The document prepared by the Ministry of Economy and Finance “has the priority objective of promoting the welfare of a framework of institutional stability, dialogue, search for agreements, and full confidence in the potential of the Andalusian society and economy.” All this despite the fact that “the parameters in which the management of regional accounts will be carried out during the 2024 fiscal year are unknown.” The regional administrations are not notified of the payment amounts due to the financing system, which covers most of their annual income. And there is no goal or reference for the growth of the deficit, debt, or spending established by the Budgetary Stability and Financial Sustainability Law.

The Andalusian Government claims to “prepare a balanced budget that simultaneously seeks not to create public debt and meet the urgent needs of families and companies in Andalusia, without stopping to ask for an urgent reform of the financing system to alleviate the serious damage that “the current model destroys the resources of the autonomous community.”

Job creation continues to be a priority, as does promoting social policies, so both goals are at the core of the Junta Government’s action. “Social policies have reached the highest allocation in history in 2024, with health, education, and social services absorbing the largest increases in spending planned for the year,” the report explained.

The persistence of drought puts water policies at the fore. “The adaptation of the provision of hydraulic infrastructure to the climatic reality of the region must be the responsibility of all the administrations with powers in this matter, where the government of the board takes the initiative and offers maximum collaboration to ensure that, from the central government and the European Union, the situation of the greatest demand registered in the autonomous community is also addressed,” said the report.

In this sense, the Andalusian Government has not yet confirmed if, as planned, the Andalusians will pay their water bill again in the improvement fee that the Government of Juanma Moreno has decided to suspend this year. It is a controversial measure because it affects the economy of families in a difficult context due to the general increase in prices, which fights the strategy of lowering taxes of popular governments because of the conviction, but at the same time it is compatible with the critical water situation experienced in Andalusia and with the constant need for additional funds from the Government of Spain and Europe for the implementation of important works for the proper management of an important resource. It has been recovered by the Valencian community.

Yes, the strengthening of the interim civil servant personnel charged with the water fee is already included in the document, with the aim of improving its implementation (it improves only 3 points compared to the socialist period) and following the procedures of EU approval.

SOME KEYS

â–ºThe Autonomous Tax Competitiveness Index (Tax Foundation) confirms that Andalusia is the second community with the lowest taxes, only behind Madrid.

â–ºIn 2024, the exemption from the fee for the optional veterinary service and the temporary bonus of the fee for the administrative and optional hunting service in Andalusia will be continued.

â–ºTax on Property Transfers and Documented Legal Acts: considering the scenario of an interest rate increase, the tax reduction has been reduced from 2% to 1%.

â–ºAccounts consider the creation of the Emergency Agency.

World Nation News Desk
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