Testimony before the Congress of Deputies Budget Committee on 25 October 2021 and before the Senate Budget Committee on 30 November 2021 in relation to the Draft State Budget for 2022

Pablo Hernández de Cos
Additional contact information
Pablo Hernández de Cos: Banco de España

No 2130, Occasional Papers from Banco de España

Abstract: The Governor’s testimony is part of the discussion of the Draft State Budget for 2022. The Budget underpins the fiscal policy considerations ahead of a gradual recovery in the Spanish and global economy, following the deep-seated economic crisis prompted by the COVID-19 pandemic. His testimony before the Congress of Deputies Budget Committee begins with an analysis of developments in the Spanish economy and the macroeconomic outlook. He sets out the latest national and international developments, along with the sources of uncertainty set to influence how economic activity evolves in the coming years. Against this background, he frames his view of the role of economic policies. In connection with the Draft State Budget, he offers his assessment of the attendant macroeconomic forecast, government receipts and spending, the resulting fiscal policy stance and public debt dynamics. He further considers the main challenges for Spanish fiscal policy in the medium and long term, which are structured around two closely linked axes: shoring up the sustainability and improving the quality of public finances. He concludes with some brief thoughts on the reform of the Stability and Growth Pact. In his testimony before the Senate Budget Committee, the Governor updates the information on the economic situation according to the latest information available and analyses in greater detail the latest inflation developments, their causes and how long they may last, and their impact on the European Central Bank’s monetary policy.

Keywords: Draft State Budget; macroeconomic forecast; outlook; sources of uncertainty; role of economic policies; fiscal policy; public debt; public finances sustainability; quality of public finances; efficiency; NGEU; Stability and Growth Pact (search for similar items in EconPapers)
JEL-codes: E62 E66 H12 H3 H5 H61 (search for similar items in EconPapers)
Pages: 95 pages
Date: 2021-11
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bde.es/f/webbde/SES/Secciones/Publicac ... 21/Files/do2130e.pdf First version, November 2021 (application/pdf)
https://www.bde.es/f/webbde/SES/Secciones/Publicac ... s/21/Fich/do2130.pdf Spanish version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bde:opaper:2130e

Access Statistics for this paper

More papers in Occasional Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().