Presupuesto y coyuntura

Resumen

The purpose of this study is to offer instruments for analysing the alignment of the budget with current economic circumstances. The article emphasizes that the public contribution to stability is on the right lines but that it is inadequate in view of the strength of private demand, which forces the public administrations to compensate private economic action (proportional compensating balance) in order to prevent serious divergences between each year's effective production and its potential level. At the same time, the public administrations should make additional efforts to reduce the structural deficit, as the task pending calls for a substantial improvement in the use of resources for this to be reduced or eliminated in view of its persistence.