Monday, August 8

The Budgets arrive at the Congress to begin their parliamentary procedure

The Minister of Finance, María Jesús Montero.

The Minister of Finance, María Jesús Montero.

The Minister of Finance, María Jesús Montero, presents this Wednesday the draft Law of General State Budgets for 2022 in the Congress of Deputies, the first step of a parliamentary procedure in which it tries to obtain the maximum possible support thanks to expansive accounts.

After delivering the so-called “yellow book” to the president of the Congress, Meritxell Batet, at 12.30 pm, Montero will present the details of the accounts for 2022, whose master lines were already released after their approval in Council of Ministers last week.

It’s about a budget for an extraordinary year, in which the economy will grow strongly after the hit of the pandemic – the Government expects GDP to increase by 7% in 2022 – and 27,633 million of European funds will be allocated, which will be used to finance projects in industry, energy, research or infrastructure.

The budget project thus has a record spending ceiling (196,142 million euros) which, the Government assures, will be compatible with a strong correction of the public deficit, which would end 2022 at 5% of GDP, 3.4 points less than this year.

To do this, it provides a record tax collection (232,352 million, 8.1% more) driven by the good performance of all taxes and new measures such as the minimum rate of 15% for large companies in corporate tax.

In consolidated terms, social spending will once again mark an all-time high (248,391 million), the majority destined for pensions (171,165 million) and with only two items that are reduced, unemployment and vaccines, both thanks to the improvement of the epidemiological situation.

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Too investment spending soars by 9.6% -up to 40,238 million-, as well as the financing of autonomous communities -112,213 million in payments on account, to which are added compensation for the settlement of 2020 and the VAT of 2017- and local corporations -23,350 million-.

Winks for young people, civil servants and pensioners

Many of the big budget announcements have been directed at young people, such as the cultural voucher of 400 euros for those who turn 18 or the rental voucher of 250 euros for low-income youth.

In addition, the salary of public employees will grow 2%; minimum and non-contributory pensions, 3%, and the public indicator of multiple effects income (IPREM), 2.5%.

The general revaluation of pensions has not yet materialized because it depends on the evolution of inflation until November, although the data point to a rise of between 2.2% and 2.3%.

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