The Government of the Canary Islands has approved this Thursday the guidelines for the elaboration of the autonomous budgets for the next year, with an initial forecast of growth of the Canary Islands economy of between 4.1 and 5.2%.
The spokesperson for the Canarian Executive, Julio Pérez, explained in the press conference after the Governing Council that these forecasts are conditioned by factors such as inflation, the war in Ukraine and the price of energy.
For this year, Pérez has indicated that the forecast of the Ministry of Finance is for GDP growth of between 4.1 and 8.5%, and although he has acknowledged that this is a very wide range, he has specified that the uncertain situation makes it difficult to determine a more specific percentage.
The counselor has said that although economic growth continues, there is no definitive prospect and has pointed out that the objective is the maintenance of basic services, so a similar expenditure to the current one will be maintained. Once the guidelines are approved, the spending ceiling will be set and meetings will begin between the Treasury and the different ministries to prepare the draft Budget Law.
In addition, he insisted that the forecasts are subject to a possible revision and although he valued the good tourist expectations everything is pending the international situation.
The position of the Canary Islands is "reasonably solid"
According to the document, in the 2023 accounts, all the financial capacity of the Autonomous Community will be transferred with the aim of strengthening essential public services and helping the sectors most affected by inflation, in an uncertain international context. The preparation of the Budgets is faced, according to the document, in a scenario of uncertainty, "in which the measures that have had to be adopted to face the Covid-19 pandemic are still partially maintained".
"Now we add the consequences that the invasion of Ukraine by Russia is causing in the geopolitical and economic context, and its effects in inflationary terms on the European economy through an unprecedented rise in prices in energy, raw materials and food".
However, the position of the Canary Islands is, according to the Government, "reasonably solid", with expectations of economic growth above the Spanish average and healthy public accounts. "The recovery could continue throughout 2022, mainly supported by the tourism sector, which shows levels very close to pre-pandemic", he says.
But this circumstance will depend "on what may happen in the second half of the year, either by the confirmed rise in interest rates by the European Central Bank to deal with inflation or by the energy supply problems that could be caused by the effects of the permanence of the war in the main tourist-emitting countries".
In addition to the protection of public services and aid measures to combat inflation, the Budgets will also be aligned with the objectives of the Canary Islands Agenda for Sustainable Development and the maximum efficiency in the management and execution of European funds.
With respect to personnel, the amounts of the remuneration concepts will be fixed taking into account the forecast of the limit, of a basic nature, of increase of the remunerations of the personnel at the service of the public sector, as well as of updating the contribution bases.
