Yesterday, the Court of Auditors published its positive opinion regarding the Government’s spending to combat the pandemic. It cost 96,838 millions euros in 2020.
From that total, 68.090 million corresponds to obligations recognized and 28.748 million to social- and labor market assistance, referred as Social Security, SEPE Fogasa, Fogasa, Muface or Muface. Out of all these benefits, the unemployment benefits derived by the ERTE (13.644 million), exemptions from quotas for companies covered under these tools (5.567 million) as well as the benefits for ceasing activity of the self employed (4,917 millions) are the most notable.
The Court’s balance in Social Security is negative for the fourth year consecutively. It was estimated that it will be 68,049 millions by 2020. The State gave loans to the General Treasury for Social Security in the amount of 30,330 million. This increased its debt to 85,351 millions. The Court recommends that urgent steps be taken to reduce this debt.
Some incidents occurred during the period. The State may have been undervalued for future expenses. The ICO guarantees are the most notable. They have a value of 4,260 million. If they were calculated using other parameters, it would have resulted in an increase of 1,074 millions euros.
The document also states that the provision to return taxes has been undervalued by at least 400million for the debt guaranteed in Sareb, for derived responsibilities, and for responsibilities derived through court rulings. This undervaluation was calculated at 1,365 millions.
The Declaration on the General Accounting of the State for the Year 2020 is also a warning from the Court of Auditors. A mismatch in the consolidated Budget result was overvalued by 2,008 millions due to incorrect temporary allocations of rights and obligations. Budgetary revenues and expenses are therefore observed that should have gone to 2020, and will go to subsequent years. On the other hand, obligations and rights from 2019 have been allocated to 2020.
