The Minister of Finance and Relations with the European Union of the Government of the Canary Islands, Matilde Asián, delivered on Tuesday morning the draft Law of the General Budgets of the Autonomous Community of the Canary Islands for the year 2024 to the President of the Parliament of the Canary Islands, Astrid Pérez. With this gesture, the parliamentary process of the public accounts begins, which are "prudent, adjusted to the real expenses of each of the ministries and management centers and which give absolute priority to essential services."
Matilde Asián stressed that, from the beginning, the Canarian Government set itself the objective of preparing new budgets and not extending the previous ones "which would have been easy" and wanted to thank her entire team for the effort to do so in a moment of special economic, institutional and political uncertainty. The government in office has not transferred to the Autonomous Communities the relevant magnitudes for the elaboration of the budgets, so the accounts have had to be calculated and elaborated in record time so that "within the foreseen period, today October 31, its parliamentary processing can begin."
Main expenses contemplated in the PGCAC
The General Budgets of the CAC establish a limit of non-financial expenditure of 11,301 million euros, which represents a percentage growth of 11% if we compare the initial figures of 2023 but an increase of only 3.3% compared to the real expenditure of 2023 and 2024. Of the total growth of the budget, almost two thirds, about 700 million, are allocated to strengthen the social shield, mainly in Health, Education and Social Welfare.
The increase in personnel expenses is estimated at 337 million euros. In general, this increase aims to face the remuneration of public employees who will experience, in 2024, a fixed increase of 2% and additionally, depending on the evolution of the harmonized CPI, could increase by 0.5%. And the rest of the increase is concentrated, mainly, in the areas of Health and Education. The allocations to attend to the financing of the powers transferred and delegated to the Island Councils also grow by 8.56%, as well as the resources of the Canarian Municipal Financing Fund, which grow by 9.54%.
The additional provision that foresees 100 million euros for La Palma is maintained, to which is added the creation of a specific fund of 50 million euros for its reconstruction and economic reactivation. Likewise, and as a novelty in this exercise, an exceptional bonus is implemented in the price of certain fuels in the Green Islands (El Hierro, La Gomera and La Palma) worth 9.5 million euros to compensate for the price difference borne by the residents of those islands.
Relevant income contemplated
Regarding non-financial income, the accounts include a total amount of 10,939 million euros, which represents an increase of 10.1%, in relation to the initial forecasts of 2023. The forecast of the increase of the Canarian Financing Block is 6.8% over the closing of this year, while the forecast of growth of the transferred taxes and fees amounts to 8.8%. Regarding the affected state financing, the agreements signed are maintained. Specifically, in the Road Agreement an increase of about 145 million euros is foreseen with respect to the year 2023.
Tax measures
All the fiscal measures contained in the Personal Income Tax of previous years are extended.
In the Canarian General Indirect Tax, a reduction of rates is foreseen for operations related to sensitive areas such as health, both human and animal. In this way, medical equipment, apparatus and other instruments designed to alleviate or treat physical, mental, intellectual or sensory disabilities, and veterinary medicines, are taxed at zero rate. Likewise, taxation is reduced in relation to goods for family use such as diapers for babies and adults, bed protectors, mattresses and furniture. Also in the field of health prevention, the taxation of energy drinks and soft drinks, juices and sodas with added sugars or sweeteners is increased, which rise from the reduced rate to the general rate.
As a measure of environmental prevention, and in coherence with its special taxation, the taxation of plastic containers and packaging is increased. Measures are also foreseen to promote industry in the field of the Special Tax on Petroleum-derived Fuels to solve the problems of competitiveness in its industrial use.
In the Tax on Tobacco Products, the aim has been to address a more harmonized regulation and the homogenization of black and blond tobacco. In addition, the new varieties and devices that are being introduced rapidly among young consumers, such as vapers and electronic cigarettes, are regulated.
PGCAC Consultation: