Budgetary policy in 2017 Before going on to specify the broad outlines of budgetary policy for 2017, allow me to remind you that the State and Social Security budget provides only a partial picture of general government activity. In a country as decentralised as Spain, in which more than 40% of public spending is by local and regional government, it is essential to take a broader perspective. Since my speech to the Parliamentary Budget Committee on 25 April, the Government has published (at the end of April) the Updated Stability Programme for the period 2017-2020. This document offers an overview of the budgets of central government agencies along with those of regional and local governments. Moreover, the Stability Programme, by adopting a 4/8  broader time horizon, provides a medium-term plan, which is important for correcting public finance imbalances. The macroeconomic projections accompanying the Stability Programme, which update those included in the draft budget for 2017, involve an extension of the current economic recovery to 2020, albeit with GDP growth gradually slowing from the 3.2% rate recorded in both 2015 and 2016. Specifically, real GDP is projected to grow by 2.7%, 2.5%, 2.4% and 2.4% in 2017, 2018, 2019 and 2020, respectively, while prices are projected to recover, so that nominal GDP growth would stand, on average, slightly above 4% throughout the period. These projections thus incorporate a path of slowing economic growth, which is also present in the forecasts of the Banco de España.
06.06.2017  Appearance by the Governor before the Senate in relation to the Draft State Budget for 2017 Luis M. Linde Governor  Ladies and gentlemen, In my appearance, which forms part of this Chamber’s discussion and approval of the State budget for 2017, I shall begin by reviewing the current macroeconomic setting and outlook for the Spanish economy. I shall then analyse the main aspects of the State budget for this year, according to the draft Law approved by the Government on 31 March, and the Updated Stability Programme for the period 2017-2020, submitted by the Council of Ministers to the European Commission on 29 April. The external environment of the Spanish economy The current international economic setting is characterised by an increase in uncertainty, chiefly the outcome of the political changes in the past year in the United States and the United Kingdom. However, that does not appear to have exerted a significant influence, so far, on the real economy, or on the financial markets. Both have continued to perform favourably and, despite rising in the final months of 2016, interest rates are holding at stillmoderate levels at all terms. The main exception to this climate of relative stability has been oil prices, which have been highly volatile in recent months. Recent economic developments in the euro area show a firming in the recovery, which is progressively extending to more sectors and countries.