As a general rule, the expenditure ceiling is an instrument

The fall in GDP and the rise in unemployment The increase in the spending ceiling is strictly related to the fall in GDP and the rise in unemployment in Spain, and the forecasts have not stopped worsening in recent weeks. Thus, the Government has worsened its economic forecasts for 2020 but has slightly improved those for . It now predicts that the Spanish economy will sink however, it also expects a rebound of that could reach 9.8% thanks to the "reactivation effect" of the Fund. European Reconstruction assigned to Spain for the coming years.



At the national level, the Bank of Spain revised downwards its forecasts for the economy's progress in September and estimated a fall of between compared to the collapse it managed in Middle East Phone Number List June (between 9% and 11.6%). Read more: Treasury maneuvers so that personal income tax affects fewer taxpayers and to raise VAT on education and health With regard to unemployment, the new Government forecasts include a drop in employment of 11.2% this year and an increase of 8.1% in 2021 , as explained by the economic vice president, Nadia Calviño, at the conference. press after the Council of Ministers.







A much larger increase than the Government approved at the beginning of the year The Government will not be content with integrating resources from Europe into next year's accounts. The coalition Executive, formed by PSOE and Unidas Podemos, began its mandate by taking the opportunity to approve a spending ceiling for 2021, along with that of 2020, of 127,609 million, which would have represented a year-on-year increase of 3.8%. The path of stability Along with the spending ceiling and the macro picture, the Government will also approve the stability path. Given that the Public Administrations will not be subject to the budgetary limits imposed by the Stability Law, the Executive has set fiscal objectives of reference and not of mandatory compliance.