The Government approves the Budgets for 2022 with record spending to attract votes




Today the Council of Ministers has given the green light to some accounts that include a record spending ceiling and on which it supports a bouquet of payments with a clear electoral bias: a 2% increase in the salary of officials, a housing bonus and a cultural bonus for young people, a minimum rate of 15% in corporate tax and a significant increase in regional financing. The The limit set on non-financial expenses for the new accounts next year is set at 196,142 million euros, compared to 196,097 million in 2021, despite incorporating 27,633 million of spending associated with European funds.

The Executive trusts that this hosedown of resources will be able to underpin a recovery of which a still uncertain profile is glimpsed. According to his calculations, next year GDP will grow by 7%, with employment increasing by 2.7%, which will allow the unemployment rate to be reduced to 14.1%. This is what is reflected in the macroeconomic picture presented on September 21 by Nadia Calviño and which did not take into account the reduction in growth in the second quarter of this year announced by the INE and which substantially reduced the tone of the recovery.

The accounts also come after the agreement in the housing law that unblocked the Budget project for 2022 and that has generated a strong earthquake generated in the economic and political world by the intervention of property prices. According to forecasts, this growth will contribute to redirect the public deficit, which according to forecasts will close 2022 at 5% of GDP -3.4% central administration, 0.5% Social Security, 0.6% communities autonomous and local corporations balance, 3.4 points below the estimate for this year (8.4% of GDP).

Civil servants and pensions

The accounts will include a 2% increase in salary for officials. As reported by ABC, this salary increase for public employees will mean an expense of 3,000 million euros in 2022 for the public coffers. This measure will trigger the total disbursement in public payrolls to, at least, 150,000 million euros.

Minimum and non-contributory pensions will also be revalued above the evolution of prices, that is, based on the average inflation rate registered between December 2020 and November 2021, an indicator that until September stood at 1.9% .

Tax increase for companies

The Government will set a minimum rate of 15% in Corporation tax for companies. This measure, which was included in the coalition agreement, aims to oblige large companies operating in Spain to a certain level of taxation. Several months ago, the OECD countries agreed to adopt this tax rate, but the Spanish Executive is ahead and will do so immediately after yielding to the demands of United We Can.

You help young people

The Minister of Finance, María Jesús Montero, has indicated in the press conference after the Council of Ministers that it is expected that six every 10 euros are allocated to social spending with the focus on young people. The accounts for 2022 will allocate a game of 12,550 million to win the vote of young people, double than in the previous year. Here it will be implanted a housing check or youth voucher for rent of 250 euros per month over the next two years to help young people to enmancipate themselves. This formula is designed for young people between the ages of 18 and 35 and with incomes below 23,725 euros.

A cultural check of 400 euros is also included for all young people who turn 18 in 2022.

Low income

For the most vulnerable, the Executive has approved a series of measures such as the update to 3% of the Minimum Vital Income. Likewise, in the heat of the rise in the price of electricity and gas, the amount of the thermal social bonus increased by 44%. On the other hand, the Budgets include a 2.5% increase in the IPREM.

Regional financing

Through the regional financing system, the regions will receive 112,213 million euros, a figure that represents 6.3% more than in 2021, a maximum amount in the history of our country. An item of 3,900 million euros is also contemplated to compensate for the negative settlement of 2020 and 3,100 million for the change in the VAT management system of 2017.

Housing agreement

To carry out the Budgets, the Coalition Government has agreed to approve a housing law that contemplates the intervention of real estate prices, although this control will only affect legal entities with more than 10 homes located in stressed areas. In addition, the Executive will apply an 18-month moratorium for the communities to apply these price controls once the state law is approved, which will not be until the end of 2022.

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