Sat. Jan 19th, 2019

The keys of the 2019 Budgets | Economy

The keys of the 2019 Budgets | Economy



The Government has sent to Congress on Monday the draft General State Budgets approved by the Council of Ministers on Friday. The accounts, which thus begin their parliamentary procedure, have no assured success, since Podemos, a partner in the Government, demands limits on the prices of rents, and the Catalan parties do not show at the moment that they are going to support them, despite the fact that increase in the investment item in Catalonia. The project includes a strong increase in spending, in large part in social items: 59% in dependency, 41% in housing, 40% in infrastructures ... Pensions already account for about half of the budgets, 153,000 of the 345,000 million. All, based on a record forecast of tax revenues, in excess of 225,000 million. In short, some accounts, to "shield the welfare state," as assured on Friday Isabel Celaá, spokesman for the Executive. These are his main games:

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- Revenue record. To finance the large social expenditure provided by the Accounts, the Government foresees a record of tax collection. According to the Executive, will enter more than 227,000 million, the highest figure ever recorded and 15,000 million over the previous budget. A good part of the increase will come new taxes, such as the Google rate or the financial transaction rate. They also raise the corporate tax for large companies and the IRPF for workers who generate more than 140,000 euros a year.

- The collection by quotations exceeds 120,000 million. Although the Government expects Social Security to obtain more than 123,000 million of income, pension spending will be more than 154,000 million, about half of the budget. To cover the deficit without exhausting the piggy bank of pensions, Treasury will lend to the system more than 15,000 million.

- Investment in Catalonia grows. In an attempt to add the support of PdCat and ERC to the budget, the State investment in Catalonia becomes more in line with its weight in GDP. Of the total investments of the state, Catalonia will be 2,051.38 million euros, 16.8%, to which we must add 200 million by the judgment of the Supreme Court of November 2, 2017 on the third additional provision of the Statute of Autonomy of Catalonia, which contemplates that the investment must be equivalent to the weight of the Catalan economy in the whole of the State. They are almost 900 million more for Catalonia than in the previous Budgets.

- Culture earns money, but not weight. Budgets include 953 million for the arts sector, 9.7% more, but in the total of the accounts it is only 0.3%, compared to 0.2% of the previous Budget. It includes a VAT reduction, from 21 to 4%, to electronic books and the digital press, in addition to strong increases in the cinema or museums.

- Game for Historical Memory. The Executive created a specific general directorate within the Ministry of Justice to promote the opening of mass graves of the Franco regime, but it lacks funds, since the Government of Mariano Rajoy reduced the amounts to 0 euros. Sánchez now allocates 15 million in the accounts.

- More money for the King's House. The budget of the Royal House will touch the eight million euros, 1.41% more than the previous year. It is the biggest increase since at least 2011. The King then distributes that budget freely, earmarking almost half of the salaries. By 2019, the salary increase of the civil servants is 2.25% since January 1st.

- Salary increase for officials. The more than 2.5 million workers in the public sector have, since January 1, 2.5% more salary, at least, as approved by the Council of Ministers in December. The increase can reach 2.75% if GDP growth exceeds 2.5% in 2019, which almost nobody expects. The game for salaries of civil servants grows by 3.9% to 23,372 million. It also continues with the salary comparison of the National Police and Civil Guard.

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