Echoing speeches made during her campaign for the presidency of Castilla-La Mancha and persistent demands on Zapatero's government, María Dolores de Cospedal just presented a plan to reduce spending and make the most of current resources. In few words, Cospedal stated that "what is not needed will be cut." The new program was announced yesterday in Toledo and will entail savings of over 1.8 billion euros between 2011 and 2012. This is 22.5% of the current budget, which is 8.6 billion euros.
Throughout all her appearances, president Cospedal constantly affirmed that the program "is a plan to guarantee social services" and that it is necessary for supporting public spending. On the one hand, she will collect 97.5 million euros in taxes in 2012, but the bulk of savings will come from spending cuts of more than 1.7 billion euros. Despite the major cuts, she hopes to have enough funds to address the "hidden deficit" that she found upon arriving in Castille-La Mancha by reducing it to 1.3% of the GDP by 2012. According to her predecessor, José María Barreda, total unpaid bills went from 700 million to 1.7 billion euros within a few days, shooting the deficit from 1.7% to 4.9% of the GDP.
So how is she going to reduce spending by 22.5% According to the president of the Junta, by enacting an "enormous austerity plan" and trimming a lot of fat: public limited companies, foundations, temporary personnel, subsidies to labor unions and employee organizations, overtime hours, fuel and repairs for vehicles, telephone lines, external services, corporate publications, meals, public works, trade unions, and making sure printers print on both sides instead of one. She will also privatize public radio and television and rework administrative space such that in two years all rented offices would be eliminated.
