Borek’s advisor proposes reviewing the parliamentary initiative in the national budget within the framework of the constitutional debate

The parliamentary initiative is not present today in the definition of the national budget, which must be reviewed at the constitutional conference, according to Javiera Martinez, director of Rombo Collectivo and current member of the economic advisory group for presidential candidate Gabriel Borek.

This came on Wednesday, November 10, before the Independent Financial Council (CFA), which held a session “aimed at knowing the views of various experts on financial matters that could be addressed in the new constitution, with the aim: to establish an example of dialogue between the exhibitors and the CFA, in the context of the process ongoing foundation,” according to the minutes of the meeting.

In the case also involving former Finance Ministers Nicolas Izaguirre and Rodrigo Valdes, and Led Macarena Garcia’s economist, Martinez explained that the limited powers of the legislature to influence the Treasury are not shared by the world’s majority.

Citing data from the Inter-Parliamentary Union, in his presentation in detail at 33% of countries the legislature does not have restrictions on making adjustments to the budget, while in 30% it can adjust the surplus/deficit with the approval of the executive branch.

He pointed out that the countries that oppose the imposition of greater restrictions on the powers of Parliament in this regard are in the minority. 16% can provide expenditure indicators, but without the surplus/deficit adjustment suggested by the Executive; 10% can reduce expenses or income, but cannot increase or create items; He explained that 11% cannot make changes to what the executive has submitted and can only approve or reject.

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On the other hand, it stated that “with regard to the power of the legislature to introduce bills or indicators that have an impact on public finances, it is also possible to take into account different approaches.”

For example, he said, In Chile and Ecuador, “parliamentary initiative is lacking”. While in “Germany, Canada, Australia, Spain, Greece, Ireland and the United Kingdom, the government is required to ‘obligate’ or agree to process the bill, generally through a fiscal decision.”

In France, in turn, under this semi-presidential system, “the constitution limits initiative, and does not allow the proposed laws to reduce revenue or increase public expenditures (but permits an increase in taxes or other revenue or a redistribution of resources),” specifically. Finally, it stated that in “Norway, Sweden and Switzerland do not impose significant restrictions on parliamentary initiative, including in the case of the impact on public finances”.

Martinez also researched issues beyond the political system that would also be addressed in the founding agreement. First, he referred to the “principle of progress and/or capacity to contribute,” calling for “providing direction and direction for tax collection/spending” and “protecting the good and efficient use of public resources and encouraging socio-economic responsibility.”

In the same way, the candidate’s advisor on the left explained that “the principle of ability to contribute means that people will contribute to public spending based on their economic, financial and personal capabilities,” explaining that “the idea that tax obligations should depend on people’s ability to pay. It is accepted in many of countries as one of the foundations of a socially fair tax system.”

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He also stressed that “Taxable capacity acts as a tax limit, in so far as it includes the prohibition of excessive taxation, on the ability to pay.”

On a second point, he addressed the “principle of intergenerational equity”, asserting that “guidance and direction for tax collection/expenditure should be provided” and seeking “to reconcile short-term social and health emergencies with long-term emergencies”. environment, with the fiscal balance required by the macroeconomy.”

Martinez also referred to the duty to contribute to public spending, which he said “has its constitutional basis as an instrument of state financing and a mechanism for achieving state objectives.”

He pointed out, in this context, that “the need for funding must be translated into establishing a general duty to contribute to such expenditures that fall on the shoulders of the country’s residents or those engaged in activities in it.” In addition, it considered it “a duty (…) to strengthen the fight against avoidance and evasion.”

finally, Putting the “principle of tax equality” on the table, which “means equal taxation of those in the same position, and different taxation of those in a different position”.

For these purposes, Martinez noted that “the yardstick used to measure this equality or inequality of jobs is the ability to contribute. In this way, the principle of tax equality presupposes the comparison of contributing capabilities, according to horizontal and vertical ideals of justice, and the prohibition of any arbitrary discrimination.”

On the same subject, but with regard to fiscal decentralization, he called for “always taking care that what comes first is the redistribution of resources, the de-concentration of power and the well-being of people (decentralization is not an end in itself).”

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