He who divides gets the best part

November 8 2015 (12:28 WET)

This week, the Government of the Canary Islands presented its budget project for the coming year, a budget that does not deviate one iota from the rules of the game set by the 2016 General State Budgets (PGE) and the Troika. We awaited this project with great anticipation, as a way of knowing if this Government truly represented any change from the previous one, as they promised us: "From here on out." Unfortunately, everything remains the same, little or nothing changes.

Budgets are the main tool for change that a Government has. Its impact on the living conditions of the Canary Island citizens is undeniable. From the Podemos Parliamentary Group, we have decided to present an amendment to the entirety of this Bill, because it does not include the objectives or the social resources necessary to guarantee a real Welfare State, as it does not advocate for contributing to economic recovery, nor for maximum efficiency in public services. Our position regarding the Budgets is due to a priority objective: rescuing people, and launching an economic future with a change in the productive model.

We are presented with a project with a total amount of 7,071 million euros, but lacking measures to face the challenges that Canary Island society faces. A ridiculous 17 million of investment effort (3.5% more) falls short, which should be the fundamental piece to reactivate the economy. We miss that necessary impulse to key productive sectors for economic diversification and the support for innovative and entrepreneurial initiatives. We are concerned about the absence of strategies to alleviate the enormous unemployment rate, the deterioration of healthcare, the rates of school failure and educational abandonment, the minimal housing policy, the lack of transversality in equality and accessibility policies, as well as the few efforts to activate internal consumption or access to credit.

We are facing a CC-PSOE Government that continues to refuse to reduce the size of the Executive. It is alarming that the spending on salaries of the Government and high-ranking officials increases by 12%, that 4.5% more is allocated to advisors and temporary staff, also that the data on allowances grows by 36.9%, up to 6 million euros. From Podemos, we have always denounced that the crisis is paid for more by some than others. The Canary Islands seem not to be the exception, it is evident that for some the crisis is a real bargain.

The mentioned figures are a consequence of the increase in the structure of the Autonomous Community, with more ministries, vice-ministries, general directorates and other positions that have been created in the re-edition of the pact between CC-PSOE. It is irresponsible and reflects the detachment from reality of some politicians: in the critical situation in which the Canary Islands find themselves, it seems evident that the "establishment" only worries about taking care of "their own".

The increase in the Executive clashes head-on with the minimal increase of 1% in the pillars of our welfare state, such as Healthcare and Education. It is also shocking that assistance to the President of the Government of the Canary Islands represents an expense of 3.9 million euros.

On the other hand, they continue without promoting a progressive fiscal policy. The most glaring case is found in the bonus to the inheritance and donation tax. Let's not be fooled, it's not the same to inherit grandma's apartment as a hotel chain. A matter of common sense, that those who have more pay more. Furthermore, policies should be oriented towards alleviating tax fraud (the underground economy in the Canary Islands represents 28% of the GDP), to the tax contribution of those who have greater economic capacity, in defense of the maximum efficiency of public services, as well as to the creation of quality employment through public and private investment.

We are aware that we are moving in a scenario conditioned by the reform of article 135 of the Constitution that the PSOE approved in 2011 and by the deficit and debt objectives set by the PP for the triennium 2015-2017. For public debt, objectives continue to be established that differ in each community, with the Canary Islands being harmed even compared to other non-compliant communities. All of this in a system in which the PP Government relegates the Canary Islands to the tail end, below the Spanish average in autonomous financing, again failing to comply with what is established in the REF. In this context, the Government intends to meet the zero deficit in 2017, one year before what is required in the Budgetary Stability and Financial Sustainability Law, being able to elaborate a more expansive, less conservative budget. People should be the priority, not budgetary compliance that differs greatly from reality. What is the use of a budget if it does not improve the lives of the citizens?

The budgets for 2016 increase by 5.3% compared to the previous year and foresee a 2.8% growth of the GDP thanks to the external demand of the tourism sector, but not due to the recovery of internal demand (consumption and investment). Despite the record arrival of tourists, the increase in jobs linked to the sector grows by few tenths, employing fewer people than before the start of the crisis. We also break records in unemployment and poverty. You don't have to be a Nobel Prize winner in Economics to understand that something is wrong.

Podemos considers necessary a tax on tourist stays in the Canary Islands, a collection that would affect the renovation of public tourist infrastructures, the tourist promotion of the Islands, the training of professionals in the sector and the promotion of diversification for the creation of new jobs. This tax, per day of stay and progressive to the type of establishment, would be a way for budgetary adjustment and would revert directly to the Canary Island society. How many tourists would come to the Canary Islands if the level of poverty and inequality continues to grow at this rate? Bread for today, hunger for tomorrow. That is the way some manage and do politics: inflate bubbles and live off them while they can.

This Parliamentary Group casts serious doubts on the Government's intentions to classify these budgets as "the most social". The reality indicates that of the increase in the allocation, only 25%, 87 million, is allocated to investment and public spending. Specifically, the Ministry of Education and Universities will have 1.1% more. The Ministry of Health increases its items by 1% more. In both cases, increases lower than the CPI. With that economic allocation, it will be impossible to solve the problems with emergencies and waiting lists, accentuating the deterioration of our Canary Island public health system.

One thing is certain, the funds destined for employment policies, the Canary Island Insertion Benefit and aid for dependency are increased, but we also consider these to be insufficient. The allocation for the PCI of 2015 was exhausted barely after the first quarter of the year, so the increase, even double, will leave many people in the same situation in which they find themselves today, without being able to access the benefit.

It does not cease to surprise us that in 2016 no allocation is collected to return the remaining 50% of the extra pay owed to the civil servants of the Canary Island Autonomous Community (under the excuse of resorting to an extra credit later to pay for that expense) and restore the purchasing power they lost in 2012. The abrupt cut in the Ministry of Agriculture, more than 10%, is especially striking.

The budgetary support for R&D&I is recognizable, but the allocations to Economic and Commercial Promotion in terms of internationalization are questionable, when the Government has not solved the structural weaknesses of the Canary Island business community. The importance of R&D&I for long-term growth and diversification must be underlined, but the low level of budget execution in this area in previous years is also worth noting.

Without a future project, the Canary Islands will not be able to overcome the situation of unmitigated disaster that it is going through. It is for this reason that Podemos requests the return to the Government of the Bill of General Budgets of the Autonomous Community for 2016.

 

Noemí Santana Perera, Spokesperson of the Podemos Parliamentary Group

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