Courtesy of Mish.
In an attempt to distract voters from all the political scandals in his administration, Prime Minister Mariano Rajoy is talking about the pending economic recovery in Spain. Don’t believe it.
Huky Guru at Guru’s Blog in Spain takes a good look at numbers that prove Rajoy is disingenuous.
Via Mish-modified Google translation, please consider Debt Remains Uncontrolled, €40 Billion Deficit in First Half
First Half Deficit 3.81% of GDP
The government deficit totaled €40 billion in the first six months of the year in terms of national accounts, 3.81% of GDP, according to data released Tuesday by the Ministry of Finance and Public Administration.
The figure represents a decline of 8.2% compared to the same period last year, although an increase of 19.9% compared to the figure recorded until May, which was around €33.3 billion.
The result of the shortfall until June due to an income reached €49.528 billion euros (+12%) and expenditure of €89.529 billion euros, up 2%.
Revenues Drop 7.1%
Cumulative to June, revenues fell by 7.1% and non-financial payments fall by 1%. What’s worse, is that for nearly every euro that enters government coffers, it is burning one euro in cash.
VAT Shows Decline in Economic Activity
State revenue from indirect taxes, with €36.221 billion, an increase of 5.1%. But remember the VAT went from 18% to 21%, an increase of 17%, so that a rise of only 5.6% in revenue means that economic activity or the collection capacity of the tax has diminished.