The Basque Finance Council ratifies the new Contributions Law, which will give “certainty” to the accounts


Economy

CVFP

EITB MEDIA | AGENCIES

The Basque Government and the three councils had already reached a preliminary agreement on this law, which regulates the distribution of tax revenues.

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Basque Finance Council

The Basque Council of Public Finance (CVFP) has ratified this Thursday the preliminary agreement reached between the Basque Government and the councils of Álava, Bizkaia and Gipuzkoa on the new Contributions Law for the period 2022-2026. This law, as highlighted by the Minister of Economy and Finance, Pedro Azpiazu, “will provide solidity and greater certainty of public accounts, at this crucial moment in the economic scenario focused on economic recovery and job creation “.

As the Basque Government and the three councils advanced last week, the new law maintains the current horizontal coefficients, and increases the vertical coefficient from 70.04% to 70.81%. In addition, the maximum limit of the Fund increases to 1.45% of the resources, and establishes a minimum percentage of 39.23% in the participation of local entities in the agreed taxes.

Azpiazu appeared at a press conference in Vitoria-Gasteiz, along with the three general deputies (Unai Rementeria, from Bizkaia, Ramiro González, from Álava, and Markel Olano, from Gipuzkoa, and the president of Eudel, Gorka Urtaran, after the meeting extraordinary event held this Thursday by the CVFP.

At the meeting, the Basque Government, the provincial councils and the Association of Basque Municipalities-Eudel have approved the new methodology that will replace the current law, extended from 2011.

The Contributions Law is the regulation that regulates the distribution of tax revenues among the provincial councils, which are the competent institutions in matters of collection, and the Basque Government, on which most of the public services provided in the autonomous community depend.

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This agreement renews the methodology for the distribution of resources and for determining the contributions of the provincial councils to the financing of the budgets of the CAV applicable to the period 2022-2026.

Next steps

After the agreement, the Governing Council on July 27 will approve the Bill, that will be sent to the Basque Parliament, where PNV and PSE-EE have the majority necessary to approve it.

Azpiazu has indicated that the objective of the Basque institutions is that, once all the necessary parliamentary procedures have been completed, the new Contributions Law will be in force by the beginning of October.

“All the institutional levels of the Basque Country have prioritized being able to have it approved before the 2022 budgets are prepared, since it provides solidity and greater certainty to the public accounts, at this crucial moment in the economic scenario focused on economic recovery and generation of employment, “said Azpiazu.

“I am convinced that both the provincial councils such as Eudel and the Basque Government have been capable of having sufficient high-mindedness to make the welfare of the Basque citizens prevail over any other issue. The new Contributions Law is the result of a Intense inter-institutional collaboration. A sincere and loyal collaboration, and a joint effort that today has paid off “, he highlighted.




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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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