Tailor-made PP budgets
- The Basque Government is negotiating with the political parties the approval of the 2017 budgets. If a detailed analysis of the economic items is made, the conclusion is that they are tailor-made for PNV and PSE to move forward with their support or abstention.
Budgets are based on poor revenue, which is detrimental to the workers’ and the grass-roots sectors. Contributions mainly come from IRPF and VAT (37.2% and 39.4% respectively). Corporate tax will barely contribute 6.9% of the revenue and excise duty will be 11%. Withholding tax will be collected 5.4 times more than corporate income tax.
These budgets accept the deficit imposed from Madrid and prioritize the payment of outstanding debt. Despite the fact that the TAV is anti-social and against the environment, as explained by the Ekopol group of the UPV/EHU, the project has a priority place in the budgets. The Basque Government will bring EUR 350 million to the Mariano Rajoy Executive for these works and will not require him to return the other EUR 1.1 billion previously deposited. To bridge all this, the Basque Government makes social cuts (education, health, social aid...) so that the one who has the most does not make adequate tax reform to give more money.
The groups that claim to be left-wing will now have to explain their true personality. Are we going to approve custom-made budgets for PP? It does not seem serious to give support based on commitments and promises from future legislatures. The 2017 budgets are going to be voted on, and if there are no major changes, the content will be the neoliberals.
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