The measures of expenses included in the agreement reached by theGovernment with Podemos, collected in the budget draft sent by the Executive to Brussels this Monday, will entail aimpact of 5,098 million euros, whileincome measuresthey will have a global impact of 5,678 million euros, which is reduced to 4,489 million euros in the 2019 budgets.
This has been detailed by the Finance Minister, María Jesús Montero, at the press conference following the extraordinary Council of Ministers, in which she specified that the impact of the spending measures will be1,992 million euros in the 'ceiling of expenditure'of the PGE of 2019.
The item that will lead to a greater outlay will be therevaluation of pensions according to the CPI in 2019, which will mean an expense of 704 million euros, to which will be added the 384 million derived from the increase in minimum and non-contributory pensions by 3%.
It is followed by the increase in funding forscholarships(536 million); the best ofDependence(515 million); theEnergy Efficiency Planof Vulnerable Homes (Feder) (400 million); and the rise ofMinimum wage at 900 euros per month, which, according to the Minister of Economy, Nadia Calviño, will not have any impact on growth and employment, but, on the contrary, will benefit Social Security contributions.
Other measures derived from the budget agreement between the Government of Pedro Sánchez and Podemos that will entail spending are those referred to allow financial assistance and improvechildren's schools(330 million); the recovery ofsubsidy for over 52 years(323 million); the quote to theSocial Security of caregivers(315 million) and the increase inpaternity leavefrom 5 to 8 weeks (300 million).
Likewise, an expense of 273 million is foreseen for the increase ofscience games; 200 million for theNational Energy Fund; 180 million for thevital minimum incomeand 173 million forhousing policy. The measures that will entail a lower cost will be the aid for theschool supplies(50 million), the aid fordinning room(25 million),culture and cinema(20 million) or the offices ofdepopulation(10 million).
Most of the income derived from the tax increase will come from the companies, through the limitation in the exemptions in the Corporation Tax, which will allow to collect 1,776 million euros, to which the 850 million that will be obtained will be added. theTax on Financial Transactions(known as 'Tobin Tax') and the 1.2 billion with the newTax on Digital Services('Google Rate').
Likewise, the Government plans to obtain more income with theincrease of income taxin very high rents (328 million); with green taxation (670 million); the increase ofProperty Tax(339 million); the limitation ofpayments in cash(218 million), the reinforcement of thelist of defaulters(110 million) and with the international measures offight against fraud(500 million).
To all this we must discount therebate of the type for SMEsthat invoice less than one million euros (260 million), the reduction ofVAT for veterinary services(35 million) and theVAT rebate on feminine hygiene products(18 million). In this way, the overall impact of the measures will be 5,678 million, although this will be reduced to 4,489 million in the 2019 Budgets.
Brussels must give its approval
The European Commission plans to issueend of november your opinionon the budget plan submitted by the Spanish government, probably during the week beginning on Monday 19, along with its opinions on the drafts sent by the rest of the eurozone members.
Before, on Thursday, November 8, the Community Executive will present its latestmacroeconomic forecasts, in which will update its projections of growth and public deficit of the whole of the eurozone in general and of each one of the partners of the euro in particular, according to have indicated community sources.
The Government has informed on Monday about thedetails of the budget plan, which maintains the path of stability raised and rejected in July by Congress. Specifically, it establishes deficit targets of 2.7% of GDP for this year and 1.8% in 2019.
In both cases these are goals that arefive tenths higher than agreedbetween the Community Executive and the Government of Mariano Rajoy when Spain and Brussels last revised the fiscal consolidation path officially (2.2% for this year and 1.3% next).
The sending of the drafts of its budget by all the euro partners opens aevaluation periodIt will end at the end of December, when Moscovici and the vice-president of the European Commission for the Euro, Valdis Dombrovskis, present at a press conference the opinions on each of them.