The Budgets of 2022 agreed between the Government formations and that have received the approval of PNV and ERC for their final approval, will have a record expense thanks to the injection of European funds and the economic recovery after the Covid-19 pandemic, which will make it possible to increase the endowment of practically all the items and allocate certain amounts to young people and low income, thanks to high social spending that will be over 50% of total spending.
The pensions, benefits for unemployment, personnel expenses and the payment of interest on the debt will add up to an amount close to 250,000 million euros, which is equivalent to more than half of the most of 450,000 million of budgeted expenses, as it was in its day in the initial project sent by the Ministry of Finance to the Congress of Deputies, and which is expected to suffer small or no variations in its final wording.
These are some of the keys:
The State plans to enter 279,316 million euros in 2022, which would mean an increase of 10.8% with respect to the same period of the previous year, taking into account the continuation of the economic recovery after the hardest phase of the health crisis and the arrival of European funds, estimated at 20,225 million euros.
According to the draft General State Budgets for 2022, the growth forecast for the aggregate tax base of the main taxes in 2022 is 6%. Tax revenues will reach 232,352 million euros, 8.1% more, while non-tax will increase 26.9%, to 46,964 million.
Income from IRPF will increase 6.7% and will slightly exceed 100,000 million euros (100,132 million) for the first time due to the increase in gross household income in 2022 and the best results in the 2021 declaration to be presented in June next year, which is expected to grow 3.5%.
In 2022 revenue in the corporate tax will stand at 24,477 million euros, which will represent an increase of 11.8% compared to the 2021 closing forecast.
The collection of the value added tax (VAT) in 2022 will add 75,651 million, 9.5% more on the expected results for 2021.
On the other hand, income from special taxes will amount to 21,843 million, which will mean an increase of 8.2%.
The pensions will concentrate a total of 171,165 million euros, 4.8% more with respect to the progress of liquidation of this fiscal year.
The PGE for 2022 incorporate increases for contributory pensions and for minimum and non-contributory pensions, which will benefit a total of 10 million pensioners. For the former, a rise above 2% is expected, after the revaluation with the CPI, while the minimum and non-contributory will rise 3%, according to the initial draft of the accounts.
For its part, Social Security plans to receive next year in State contributions a total of 36,276 million euros. Of note, due to their amount, are the transfers that will be made in compliance with the first recommendation of the Toledo Pact, the one referring to the separation of sources of funding for Social Security. For this concept a total of 18,396 million euros will be transferred from the State to the system, 4,467 million euros more than in the 2021 budget, in order to guarantee the sustainability of the system both in the medium and long term.
Regarding the public debt, the agreed item linked to its cost amounts, according to the initial agreement, to more than 30,000 million euros, 4.7% less, due to the expected reduction of debt (up to 115% of GDP) and deficit (5% of GDP) by 2022. The cost of debt has a weight of 6.58% on total expenditure.
Despite the contention, the figure is almost double that of the interest on the debt in 2008, when the public debt did not represent more than 34.3% of GDP and now exceeds 120% of the national wealth.
Citizen security, defense and justice
Considered basic public services, which include citizen security and penal institutions, defense, justice and foreign policy and cooperation for development, will be left with more than five euros out of 100 by raising the amount allocated by 7.8%.
The departure of unemployment has an initial allocation of more than 22,000 million euros, which would be 10.2% less, before “the improvement of employment and the reduction of unemployment”, as explained by the Minister of Finance and Public Function, María Jesús Montero, after the approval of the public accounts in an extraordinary Council of Ministers.
Access to the living place you will receive 46.3% more. The project highlights the funds allocated to the program for the construction of social rental housing in energy efficient buildings, with an endowment of 500 million euros, as well as 200 million for Youth Rental Bonus, in order to provide fixed rental assistance to young people up to 35 years of age.
Other items of social spending
What’s more, other economic benefits will also increase and will take slightly less than five euros out of every hundred, with a departure that rises by more than one point compared to 2021
Among the items allocated to the area of social spending, the strengthening of the protection of the most vulnerable stands out, for which it will be endowed with more than 4,000 million euros the item for the payment of the Minimum Living Income and family benefits.
So much the Social Security administration, such as the Ministry of Health and Education they will receive amounts slightly higher than the previous year.
A lThe item for culture will be assigned an amount that exceeds by more than 35% that of the previous year, with an amount that includes the item destined to the Youth Cultural Bonus, to facilitate young people’s access to culture and revitalize the cultural industry.
Stand out in the cultural budget the credits destined to the National Plan for Digital Skills (‘digital skills’), and the endowments destined to the revaluation of the cultural industry and the promotion of the sports sector.
Agriculture, fishing and food
Within the actions of an economic nature, agriculture, fishing and food industry and energy, commerce, tourism and SMEs, and transport subsidies, will also receive a higher allocation than the previous year.
The same will happen with resilient infrastructure and ecosystems, research, development, innovation and digitization; and military research, development and innovation.
According to the draft budgets, in order that the comparison is homogeneous, the data does not take into account the extraordinary resources transferred to the autonomous communities in 2021.
Transfers to the autonomous communities
The 2022 budget project allocates record deliveries to the autonomous communities and an extraordinary fund of more than 7,000 million euros.
The regional financing system will have more than 100,000 million euros in 2022. And to this figure are added the European funds and an extraordinary transfer, partly intended to compensate for the negative settlement of 2020 and the resources lost after the change in VAT management in 2017.
Local entities will have more than 23,000 million being most of the financing system (22,062 million installments on account) and just over 1,000 million extraordinary, also to offset negative settlements.
Connectivity, cybersecurity and 5G
The Government plans to invest next year an amount greater than 1,500 million of euros in connectivity, promotion of cybersecurity and 5G, the latter technology to which 600 million euros will be allocated for actions related to telecommunications networks, technological change and innovation.
With 600 million it is expected to promote and accelerate the deployment of 5G networks and coverage throughout the national territory, and also in the main transport corridors (roads and railways) both national and cross-border. In addition, this amount will be used to develop 5G use cases, in addition to R & D & I ecosystems in 5G and 6G as well as 5G cybersecurity.
Increase in the price of cigarettes
Finally, the Government foresees increase revenue corresponding to excise duties by 5.5% about him tobacco, for the year 2022, since it anticipates a rise in the price of cigarettes.
The Executive has estimated this rise in revenue “under the assumption that cigarette prices will rise, after several years of stagnation.”
In addition, the document specifies that of the total quantity, almost half will remain in the public coffers, 14% above the estimated collection for the end of 2021, and the rest will be distributed among the autonomous communities.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.