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Monday, 16 April 2012
Article: State Budget Slashes Spending Across the Board
The budget approved last Friday can be summed up in one word: cuts. In fact this year Spain has seen its biggest ever budget reduction since the end of the Franco regime. None of the Government departments has been spared, with an average reduction in funding of 16.9 per cent, aimed at saving some 27.3 billion euros in 2012.
The Spanish Government’s goal is to reduced the current deficit from 8.51 per cent of the GDP at the end of 2011 to 5.3 per cent by the end of this year. Announcing the budget plan to raise this 27.2 billion euros, Treasury Minister Cristobal Montoro promised that “priority” funds would not be touched such as pensions and unemployment benefits.
Otherwise funds are being slashed across the board. Even the budget set aside for the Ministry of Health will be reduced by 13.7 per cent (and the 283 million euros earmarked for aid for those dependent on others disappears altogether). The budget for Education, meanwhile is going down by 21.2 per cent, that is, a reduction of 830 million euros.
The Foreign Ministry will the suffer the most with a 54.4 per cent cut in government spending. The brunt of this will be borne by the Spanish Agency for International Cooperation for Development which loses out on 594 million euros, along with the Water Fund 125 million less) and the Development Promotion Fund (670 million less). The 7.4 per budget cuts in the Employment Ministry will affect active employment policies (1.5 billion), that is, projects to retrain unemployed workers. The 67 million euros for the Immigrants Integration Programme has also been wiped out.
Malaga
The funds reserved for the province of Malaga are around 50 per cent less than the previous year’s, with some 376 million euros. The breakdown includes a sum of 12.5 million euros for the rail test circuit in the Vega de Antequera, expected to cost a total of 400 million.
A surprise in the figures has come in the form of 682,000 euros for a viability study to extend the Cercanías railway line as far as Marbella. The scheme has already been considered by the Junta de Andalucía and the regional authority has offered the central Government the studies and surveys it has already carried out at a cost of 13 million euros.
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Cata: I can understand the need for budget cuts, but they really shouldn't take money away from Education. Oh, and I want that train.
ReplyDeleteÁngela: The first priority for the local government should be extending the local train service to Marbella.
NI-B Ana, Maika, Mª José, Dani:
ReplyDeleteWe think that they have to use as much money as the possible to help small businesses that are still flourishing and to help others get started. The key is to put their trust in innovation and new ideas.
NI-B Claudia, Leo, Antonio, José:
ReplyDeleteWe think the government's handling of the economy in Spain is a disaster. We don't agree with the cuts to the departments of Health and Education while the royal family continues to spend money frivolously on things like safaris.
NI-B Patricia, Marina, Maria:
ReplyDeleteBuilding a railway station in Marbella would be advantageous to the local government as it would make it easier for tourists to get from Málaga to Marbella. However, Spain would have to spend a lot of money to complete the project that it probably doesn't have as huge cuts have just been made in other important areas like health and education.
Ángela: It seems like my dream of having the train reach Marbella will finally come true. The question is...when??
ReplyDeleteCata: I, too, would like to see a train to Marbella. However, I am certain I won't be here to see it.
NI-D Maria, Laura C, Laura L, Ana P:
ReplyDeleteAlthough we are suffering from a bad economy at the moment, we think that extending the train to Marbella would be a good investment because it will bring more tourists to La Costa del Sol which will help the local economy.
NI-D Fran, Coral, Alba, Virginia:
ReplyDeleteBecause of the economic crisis in Spain, the government has been cutting the budgets of all the ministries, but especially in the ministries of Education and Health.
In addition to these cuts, they also want to extend the train to Marbella which would cost a lot of money. However, it could benefit the many unemployed citizens along the coast.