Concòrdia Proposes Stricter Debt Limits in Andorra's Public Finance Law Revision
Cerni Escalé submits amendments to Law 32/2014 tightening borrowing caps to 50% of GDP initially, dropping to 20% by 2046, banning deficits in.
Key Points
- Debt cap: 50% GDP initially, 35% from 2036, 20% from 2046.
- No deficits in economic growth except high-priority investments.
- Overall deficit ceiling at 1% GDP under specific conditions.
- Aims to tighten borrowing limits and cap current spending.
Cerni Escalé of Concòrdia has submitted a series of amendments to a proposed revision of Law 32/2014 on public finance sustainability and budgetary stability. The changes aim to tighten state borrowing limits, narrow the scope for running deficits, and cap current spending.
A key proposal targets Article 12 of the law, redefining maximum public debt thresholds. Under the plan, Andorra's debt would not exceed 50% of nominal GDP initially. This limit would drop to 35% from January 1, 2036, and further to 20% starting in 2046.
The amendments would also bar the general administration from posting deficits during periods of economic growth, except for investments deemed to have high strategic priority. The overall deficit ceiling would remain at 1% of GDP, but deficits would only be permitted under specific circumstances.
Concòrdia's measures seek to strengthen fiscal discipline amid ongoing debates over the original law's modifications.
Original Sources
This article was aggregated from the following Catalan-language sources: