La ausencia de Presupuestos Generales del Estado castiga la inversión en infraestructuras

Expresidenta María José de la Fuente claims that the three extensions in the General State Budgets (PGE) have prevented the increase of funds for infrastructure repair and maintenance. The decrease in investments and expenditures on maintaining rail infrastructure, which is one of the main reasons for the two accidents in the high-speed network this year, can be explained by the absence of General State Budgets (PGE) over the last legislature.

Pedro Sánchez continues to govern with the Public Accounts of 2023, after not presenting a single project since reelected as president three years ago. This issue has forced the Executive to restructure over 330 billion euros through transfers between ministries or credit transfers, as well as to increase the public debt volume, despite the record of tax revenues registered year after year.

This issue has led to the statement by expresident and current lector of the Court of Accounts, María José de la Fuente, during her intervention at the opening day of the XXXVI Congress of the Association of State Fiscal Inspectors (IHE), who concluded today in Toledo. The budgetary orphanhood has not only affected the investments and infrastructure parts in the General State Administration, but also the spending forecasts in these areas of the rest of the administration levels, due to "not having the necessary information to develop their own budgets; thus, they do not know what investments the State will make in their territories, so they cannot plan adequately either their own investments."

The same line of thought was expressed by other fiscal professionals, such as the chair of Finance at the Complutense University of Madrid Juan José Rubio, who stated that, "to put it bluntly, it is necessary to explain that the maintenance costs of rail tracks require a well-managed system." Therefore, the absence of PGE over the last years is at the center of the analysis of the tragic rail accident this week in Urda.

"The budgetary extension is an exceptional mechanism and should be used as such," concluded the ex-president of the Court of Accounts, in line with the statements made by other institutions in recent months. The president of the Independent Authority of Fiscal Responsibility (AiRef), Inés Olóndriz, warned in September that the presentation of new Public Accounts is crucial to "strengthen planning and advance towards a realistic and credible medium-term fiscal strategy."

The importance of the absence of PGE has been further aggravated in the current environment, marked by the increase in population that has resulted in an increase of financing needs for the autonomous communities in matters such as health, education, housing and infrastructure. "The amount of the budget remains the same, so all the expenses that may result from inflation of costs, provision of services or exercise of public functions cannot be absorbed," explained de la Fuente, so "new initiatives cannot be launched and the increments of demand cannot be absorbed in a country that in recent years has increased its population, at least, by 400,000 people."

Since the General State Budgets of 2023 expire on January 1st of the following year, the Government has been forced to approve numerous 'patches' so that the three successive extensions of the last presented Public Accounts by the Ministry of Finance keep the Spanish economy afloat, in a period marked by milestones such as the deployment of European funds, the increase of pension spending, aid for the divorce or the conflict in the Near East, the deterioration of public services or the increase of defense spending after the wars in Ukraine.

In total, the modifications, extensions of credit and transfers between ministries already exceed 330 billion euros. This figure could even be higher soon, given that the Government continues to approve measures at the edge of general elections. This formula has been sustaining the increase of tax collection and the volume of debt, as well as the injection of European funds, although infrastructure investments such as the rail have not been one of its main destinations.