The Government highlights that La Rioja has met in 2017 with debt and deficit targets
- La Rioja has met the debt and deficit targets in 2017 and closes the budget year at pre-crisis execution levels, according to the Minister of Public Administration and Finance, Alfonso Domínguez, who has shown his “satisfaction” for this fact.
Precisely, has indicated, in the subsequent appearance to the Governing Council, accompanied by the spokesperson of the regional executive, Begoña Martínez Arregui, who has informed the Council tomorrow about the closure of the budget execution for the year 2017 of the Autonomous Community of La Rioja and the Executive Financing Strategy for the current fiscal year.
In the first place, it has detailed that La Rioja has closed the year 2017 fulfilling the objective of budgetary stability in terms of public debt set by the Fiscal and Financial Policy Council for 2017 at 18.3 percent of GDP, as This morning the Bank of Spain reported. Thus, the debt of La Rioja, in absolute terms, stood at 1,570 million euros in the fourth quarter, which is 83 million more than in 2016, which have been used to finance the expenses derived from the coverage of the deficit and the return of negative settlements.
Likewise, La Rioja has met in 2017 with the objective of stability at the close of the year with a deficit of -0.39 percent, below the limit set at -0.6 percent. For the counselor “these data confirm that La Rioja is a solvent community, with credibility and a future, since it has been able to contribute to the fiscal consolidation of this country, strengthening the quality of essential public services and reducing taxes on citizens” .
In this sense, the degree of budget execution rose to 94.43 percent in 2017, “thus being at pre-crisis levels”. According to the execution data, the Government of La Rioja has given priority to social and health expenditure, since the degree of execution of SERIS reaches 99.40 percent; the Ministry of Health, 98.26 percent; Education, Training and Employment, 94.68 percent and Social Policies, 84.51 percent. The Ministry of Agriculture, Livestock and the Environment (92.66) and Promotion and Territorial Policy (95.05%) also stand out for their high execution.
As for the income budget, it has been executed at 94.05 percent and highlights the behavior of indirect taxes, whose execution rises to 114 percent, as a result of the improvement of the economic situation and the greater activity. Thus, in 2017, more than 327 million euros have been collected.
FINANCE STRATEGY FOR 2018
Domínguez stressed that in this context, “the Government of La Rioja has designed a financing strategy for the current year, which is based on three axes: the maintenance of La Rioja in the Financial Facility Fund, in extending the average life of the debt portfolio and setting interest rates, and looking for new financing formulas in the bond market. “
Thus, the regional executive has agreed to expand the accession of La Rioja in the Financial Facility Fund during the second quarter of the year and while the conditions remain favorable for the region, so it will hire a new operation with the ICO by value of 169.4 million.
This new operation is added to the one carried out for the first quarter for a value of 82.4 million euros. The Financial Facility Fund is the only funding mechanism enabled exclusively for communities that have met budget stability objectives.
The permanence of La Rioja in this mechanism allows it, on the one hand, to cover the financing needs of the Community under conditions more favorable than those currently offered by the market and, on the other, to extend the average life of the debt portfolio and to fix the interest rates before a foreseeable rise in the markets.
The Government of La Rioja will continue to adhere to this mechanism as long as its conditions continue to be favorable to the interests of the region. Otherwise, it would explore other financing channels such as the bond market, which includes the so-called responsible bonds, directly linked to social development and to finance projects with environmentally sustainable benefits.
Currently, 96.8 percent of the debt of the Autonomous Community of La Rioja is covered by long-term debt (of which, 81.5 percent are public debt issues and 15.5 percent bank loans ) and 3.2 percent in the short term.