From the explosion of spending to the Catalan mortgage

This Wednesday the main lines of the Project of State’s general budgets (PGE) for 2022, the highest spending in history, inflated thanks to the injection of 27,633 million euros on account of the European funds that Spain must receive until 2023. Which is 3.8% more than the previous year. But, what are the games that increase the most? What are the autonomous communities that benefit the most? Here is a brief guide to succeed in budget sudoku:

As has happened in the 2021 Budgets, the largest item once again corresponds to the Pensions (37.3% of the Budget), in addition to being one of the

more are increased. Specifically, the Government plans to spend 171,165 million euros on this item (4.8% more). Also noteworthy is the strong ‘push’ of games such as Justice that sees its endowment grown by 11.5% to 2,284 million euros; Foreign Policy that will have a 19.7% more budget up to 2,254 million; Health that increases its budget by 11% to 5,434 million; living place (‘Access to Housing and Building Promotion’) will have 46.3% more budget than in 2021, reaching 3,295 million euros; farming will add 5.3% more to its budget than in 2022 will be 8,844 million and while Commerce, Tourism and SMEs that will enjoy a provision 32.1% higher to 2,932 million while that of Industry and Energy it will grow a slight 1.2% to 11,316 million euros. But, among the great beneficiaries, undoubtedly stands out Culture that sees his departure shot up 38.4% to 1,589 million.

How much will the pensions and salaries of civil servants go up?

The pensions will go up more than 2% next year, in line with the average inflation resulting from this exercise and which the Executive estimates could be around 2.3%. This is the method of calculation that has been established after the first part of the pension reform agreed with the social agents, in which it is expected that the revaluation of the income of the elderly will be set with inflation average for the 12 months prior to November. That is, taking into account the period from December 2020 to November of this year. For their part, non-contributory benefits and the Minimum Living Income (IMV) will do so by 3% next year.

How has the budget ‘manna’ been distributed among the autonomous communities?

This year the ‘manna’ of the State will be very generous with the autonomous communities, although more with some than others. As a whole, the territories will receive in concept of transfers 108,792 million euros for historical payments on account and the creation of an extraordinary fund of 7,004 million, destined to partially offset the negative settlement of 2020; as well as what was lost in the change in VAT management in 2017. In this ‘Lottery’ Catalonia is one of the great beneficiaries since, in terms of investment, it concentrates 17.2% of the total (2,230.74 million euros) together with Andalusia with 2,267.07 million and 17.4% of the investment. It is followed by Madrid’s community with 1,151.46 million euros (8.9%), Valencia which sees the State investment increase by 9.3% to 1,208.61 million euros, Galicia with 1,074.72 million (8.3%) and Castile and Leon with 997.44 million and 7.7% of all investments.

What are the ministries that benefit the most from these Budgets?

The biggest hose in these Budgets is taken by the Ministry of Inclusion, Social Security and Migrations of José Luis Escrivá who will have a principal endowment of 15,322 million euros to which to add the extraordinary transfer of the State to guarantee pensions for an amount of 18,398 million euros. This makes the budget go up 32.1% compared to what was available in the 2021 accounts. Ministry of Transport which will have an amount of 13,330 million euros. Which represents 16.2% more. At the other extreme, the ministry with the smallest budget is Consumption led by Alberto Garzón, who this year will barely have a budget of 60 million euros, although his departure increases by 46.7% in percentage terms compared to 2021 when he had 41 million euros. But the largest increase has corresponded to the portfolio of Industry which will have an 82.9% more budget and whose allocation scales to 4,382 million euros. As a curiosity, the Ministry of Equality headed by Irene Montero will have 516 million euros available next year. That is, 14.4% more budget and, for the first time, this will exceed 500 million.

Does the State return to the ‘rescue’ of pensions?

Yes, with up 43,000 million euros distributed in a record transfer of 36,276 million euros (almost 17% more than last year) and a loan of 6,982 million euros, to compensate for the ‘red numbers’ in which this body is installed, whose debt is close to 100,000 millions of euros. All this despite the fact that pension spending It grows by about 8,000 million in 2022, which represents an increase of 4.8%. This movement follows the recommendation of the Toledo Pact to transfer the deficit of the Social Security to the State separating the sources of financing and limiting the ‘improper expenses’ that this organism assumes.

Will there be more tax hikes in the 2022 Budgets?

Yes, although the Government takes its foot off the gas. The main novelty is the establishment of a minimum rate in the Corporation tax 15% and 18% for financial entities and hydrocarbon companies. In this sense, the Government is very optimistic and believes that the collection will skyrocket by 11.8% to 24,477 million. There will also be modifications on the bonificiones for entities dedicated to the rental of housing that go from 85% to 40%. In the same way, savers can be harmed by the reduction of the deduction in the individual pension plans that it will go from 2,000 euros to 1,500 euros a year, and that before 2021 it was at 8,000 euros. The deductions in company pension plans, on the other hand, are extended from 8,000 to 8,500 euros.

How much are the salaries raised for the Prime Minister and the ministers?

Unless, as last year, things change during the imminent parliamentary procedure: the Prime Minister Pedro Sanchez and its ministers will benefit from the same salary increase as civil servants, 2%. Specifically, Pedro Sánchez’s emoluments will climb from 84,845.16 euros per year to 86,542.08 euros. That is, an increase of 1,696.92 euros more than last year. Per month, Sánchez will charge 7,211.84 euros. The three vice presidents of the Government (Nadia Calviño, Yolanda Díaz and Teresa Ribera) that will go from receiving 79,746.24 euros per year to 81,341.16 euros. His monthly salary will be around 6,778.43 euros gross. All of them do not have extra payments. The rest of ministers They will also see their salaries raised to 76,355.28 euros gross per year. Each month they will receive 6,362.94 euros. The update of salaries reaches other levels of the administration such as the secretaries of state who will receive 74,892.12 euros per year or autonomous bodies such as the Council of State, whose president is the former vice president of the Government Maria Teresa Fernandez de la Vega it will also charge 2% up to 86,900.76 euros per year.

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