This is the first time in ten years that the commission, which includes the financial comptroller Antonio Hernández Gamarra and central bank governor Miguel Urrutia, has rejected the budget. They did so largely because the budget was based on the government's austerity measures, which have to be approved in October's referendum, and on a tax-evasion law which is still yet to be completed, let alone passed. The commission said it felt that the tax revenues assumed by the budget could be far higher than the actual income, and called on the government to draw up a more realistic package.
The finance minister, Alberto Carrasquilla, said that the commission's complaints were inconsistent. 'This decision doesn't make any sense,' he said, 'on the one hand the congressmen say they're worried about a fiscal imbalance and the sustainability of debt levels and on the other hand they are demanding more resources for investment.'
The government will now have to take into account the commission's objections and present a new budget before 30 August. The proposals then have to receive congressional approval before 20 October.
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