Spanish Prime Minister Mariano Rahoyu should take measures to increase revenues to the state budget for the leveling effect of the tax cuts announced in the last month, said the International Monetary Fund in the statement.
“The Spanish treasury is losing revenue – said the head of the IMF mission in Spain James Daniel. – Should offset the cost of further measures in the future.”
Rajoy has ignored calls the IMF and the European Commission to raise indirect taxes and close tax loopholes in anticipation of next year’s election. Its goal is to reduce income and corporate taxes to stimulate economic growth and reduce unemployment amid strong reduction of the budget for the entire democratic history of Spain.
“Spain needs constant political action to ensure sustainable and strong growth – IMF said. – Unemployment remains high, as the level of public and private debt.”
Recall Spain’s economy grew in the I quarter of this year amid rising government spending and households.
GDP grew by 0.4% in January-March Quarter, according to National Statistical Agency. Rate of growth accelerated during the reporting period compared to the IV quarter due to growth in household spending.