The government does not plan to cut public wages or massive tax increases

The government does not plan to cut public wages or massive tax increases

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The government spokeswoman and finance minister, María Jesús Montero, said on Friday that “there is no plan to make any type of adjustment in the public sector,” such as a possible drop in the salary of public employees, and has ruled out that Go to approve “neither massive tax increases nor massive decreases” as a consequence of the deficit and debt expected by the Covid-19 crisis.

This was stated by Montero at the telematic press conference to present the update of the Stability Program sent last night by the Executive to Brussels, together with the National Reform Plan, which foresees that the public deficit will soar to 9.2% of GDP this year and public debt to 115.5% of GDP, with a 5.2% reduction in revenue, with 25,711 million less, and an increase of 57,765 million in spending.

“There are no plans to make any kind of adjustment in the public sector,” said Montero, who explained that the government wants to stimulate consumption and domestic demand when mobility may be in its “absolute capacity” phase and for businesses can open, along with the productive activity.

In this sense, he has emphasized that the “fundamental” is to activate the economy, maintaining wage incomes as far as possible and “without developing any added process over what was foreseen at the beginning of the year”, he answered when asked about if the Government is considering any adjustment in the salary of public employees or in the public sector.

The ‘Google rate’, in force in the last quarter

In the same way, Montero has clarified that the Government “does not consider either a lowering or a massive rise in taxes”, but to process “quickly” the fiscal figures that are in Congress – Google and Tobin rates -, thus such as the Law against tax fraud, which is “about to enter” its processing.

According to Montero, the ‘Google’ and ‘Tobin’ rates could come into effect in the last four-month period of the year, although “it no longer depends on the Government”, but on the amendments and the processing of political groups in Congress.

In this sense, he has specified that it is more foreseeable that the digital services tax will see the light of day, since the one related to financial transactions involves “somewhat more complexity”, although he has assured that the Government also has the device prepared to that it can be implemented “as soon as possible”.

On the other hand, it has indicated that a tax for large fortunes has not been studied, although the Government considers that higher incomes should contribute more.



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