taxes latest publications
The COVID-19 crisis will cause an unprecedented deterioration in public finances, which will dwarf even the deficit and debt levels seen during the Great Recession. It is essential that Spain emerges from the crisis in a position to resume the path of convergence with the most advanced European countries.
Lower tax revenue would lead to a higher primary deficit (ceteris paribus). To meet the primary deficit target of 0.4% of GDP for 2020 under the aforementioned contraction range, the federal government would need to cut down public expenditure by MXN 209 billion and MXN 418 billion in 2020, respectively.
Predictably, Spain closed 2019 with a public deficit that was closer to 2.5% of GDP than to 2%, meaning little change in comparison with 2018. This almost complete lack of improvement means that fiscal consolidation efforts will be carried over to this year.
The country only collects 14% of GDP for tax purposes. Not only does this represent the lowest level of all the countries that are part of the Organization for Economic Cooperation and Development (OECD), but it is also lower than the collection levels of most Latin American countries.
October 29, 2019
The Evolution of Financing For Autonomous Communities Under the Common System, 2002–2017
This paper establishes homogenized series of regional financing, based on homogeneous competencies and fiscal effort, between 2002 and 2017.
Economic package reinforces signals of fiscal discipline by establishing a primary surplus target at a weak period of the business cycle.Consequently, it is positive that the federal government has proposed a primary surplus of 0.7% of GDP instead of the 1.3% that it had suggested in Pre-Criteria of economic policy for 2020
One of the most hotly debated political issues during the last elections was the margin that Spain has for raising and lowering taxes.
Despite the reduced fiscal space, we consider it desirable to boost private consumption and, by the same token, aggregate demand by reducing the target for the 2019 primary balance to 0.5% of GDP.