budget for 2017

The support of 2 MPs from radical left pro-independence CUP, the main partner of governing cross party 'Junts Pel Sï', allowed the budget for 2017 to overcome the appeals presented by the oppoistion groups in the Parliament. Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, defended this Tuesday the budget for 2017. According to Junqueras, the draft especially focuses on “fiscal justice” and social expenditure, which he defined as fundamental pillars for economic growth. “We have many difficulties and many more are being put in our way, but it is clear that our economy and our society are capable of making it through”, he stated on the first day of the two-day session during which the Parliament will vote on the budget for 2017. “This is the best budget possible”, he assured in November, right after presenting the bill to the Parliament’s Bureau and emphasised the social orientation of the draft budget. Indeed, more than 74% of the total bill for 2017 is allocated for social expenditure and €1.1 billion more has been allocated for this purpose in comparison to the budget for 2015, which had to be extended for 2016.

The Government’s draft for the 2017 budget was published in the Parliament’s Official Journal this Tuesday. On Wednesday, the different groups in the Catalan Chamber will be able to present appeals and the whole bill will be discussed on the 20th of December. “This is the best budget possible”, Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, stated right after presenting the draft. “The time of cutbacks is over”, he assured and emphasised that the budget for 2017 has been enhanced in comparison to the previous one “both as a whole and in each department”. Indeed, the budget for 2017 allocates €1.1 billion more to social expenditure than the bill for 2015 – which was extended for 2016. The Health System with €8.7 billion and Education and Universities with €5.5 billion are the areas with the highest amounts allocated.

The Catalan Ministry for Economy and Tax Office presented this Wednesday the data of the macroeconomic chart to be included in the budget for 2017, which the Catalan executive expects to pass next week.  According to this document, the Catalan economy’s expected growth will be 3.4%, 0.5% more than the growth forecast for the Spanish economy, which is expected to be 2.9%. Regarding 2017, the chart keeps the figure released last May which foresaw 2.7% growth. According to the Catalan Vice-president and Minister for Economy and Tax Office, Oriol Junqueras, this figure is “considerably higher” than the expected growth for the Eurozone (1.5%). The budget for 2017 also foresees the creation of 160,000 jobs between 2016 and 2017. 

There will be an allocation in the 2017 budget for the pro-independence referendum, which the Catalan Government will carry out “regardless of the situation”. Thus, the Secretary for Tax Office, Lluís Salvadó, responded to pro-independence CUP’s demands to call a referendum in 2017 even if the Spanish Constitutional Court (TC) could ultimately appeal or suspend the bill. “The Catalan Government has a univocal commitment and the referendum will go ahead”, he stated this Tuesday in an interview with TV3. “We will do it in one context or another”, he added. The bill for 2017, which received CUP’s support last Saturday, also increases social expenditure by 989 MEUR in comparison to the amount allocated for this purpose in 2015. The Government is determined to approve the budget for 2017 and bring the bill before Parliament on the 29th of November.