Cabinet approved this Tuesday project Budgets from 2023, It brings total items for next year to 485.986 million, 34.517 million more than budgeted in 2022, with a significant 7.6% increase in consolidated expenditures, above the economic growth forecast for the next year. large accounts, The coalition government, the last of this legislature, is thus preparing to face the election year that will unfold in 2023. pensions will grow 11.4%; investment will increase this by 33% and Defense’s by 25.8%.
To finance this increased spending, the Government is counting on higher tax collection (a 6% increase expected) driven by the new extraordinary taxes on banking, energy and wealth, as well as the countermeasure plan of the agreed-upon tax treaties between them. government partners and for the surplus income that inflation reports to the public coffers. highest collection social quotes job growth should also help transfers as well as fuel income. european funds. As a result of the higher expense and revenue play, the Government estimates that the deficit of all administrations will increase from 5% of GDP, which is expected to close in 2022, to 3.9% in 2023.
block social spending growing strongly by 10.5%, adding to 266,719 million, 58.5% of total budgeted expenditures. “It is the largest social expenditure in history to strengthen the welfare state,” said the Finance Minister. Maria Jesus Montero, at the press conference after the meeting of the Council of Ministers. In particular, an increase of 11.4 percent retirement spendingdriven by all updates benefits – with and without additives- According to inflation data, about 8.5% I’m waiting to see how prices develop in the coming months. Also, an allocation of 2,955 million from the Intergenerational Mechanism will be made in favor of the Social Security Reserve Fund in 2023, after the money has been withdrawn from the retired ‘piggy bank’ until it is zero ten years later. Increase in equity (MEI) and social contributions required to participate in the future financial challenges of the system.
Within the social spending bloc, the Government also included a 6.7% increase. Health expenses, for their infrastructure, which includes 500 million primary care and mental healthas well as an item of 50 million will increase the university’s offer by 1,000 places first medical course. In addition, an increase of 620 million is foreseen. addiction spending.
Minister Montero summarized that these are Accounts marked by “prudence, responsibility, social justice and economic efficiency.” The dual purpose of these Budgets is – as they put it – to “accompany Spanish society in moments of uncertainty caused by the war in Ukraine” and to take on the “major challenges” of modernizing the Spanish economy. After deliberation between the two government partners – PSOE and UP – until Tuesday morning, the quest for parliamentary support will now begin so that the new Accounts can go into effect on 1 January.
30.008 million of the total consolidated expenditure of the state and its autonomous bodies budgeted for 2023 (485.986 million Euros), European bailout funds.
Main measures
Among the most rising expenditure items Defense records a 25.8% increase in the Government’s intent to comply with the commitments President Pedro Sánchez has made before NATO partners. this infrastructure spending increased by 6.7% overall investment section VI It foresees an increase of 33% with the effect of the Recovery, Transformation and Resilience Plan, which will be expanded to titles such as R&D+i, which recorded a 22.8% increase in the budget, and European funds. project.
From the budget items, the projected unemployment protection As Montero explained, it fell by 5.3% (up to 21,278 million) due to the predictably good development of the labor market. The amount of unemployment benefits will increase in 2023 following an agreement between the two government partners to reverse some of the adjustments promoted by the PP governments.
The budget project also increased the salaries of public employees by up to 3.5%; an increase in the minimum vital income; extension of the subsidy for public transport passes at the state level; an increase of 102 million euros for the social thermal bonus and, among other measures, the extension of the 250 euro subsidy to rent housing for young people.
macroeconomic picture
being spent public debt interest For its part, it will grow again after years of restriction, increasing 3.6% to reach a total of 31,275 million.
The 2023 budget draft is built on the following foundations: macroeconomic picture In the context of the current energy crisis, it predicts a sharp slowdown in the economy for the coming year. While there are “no signs of slowing down in the economy at the moment,” according to first vice president Nadia Calviño, the reality is that the economy will grow at around 4.4 percent this year, according to the macro chart presented this Tuesday. It rose to 2.1% in 2023 amid the gradual correction of inflation expected by the government. The government forecasts employment to grow slightly (as measured in full-time equivalent jobs) by 0.6% in 2023 and forecasts the unemployment rate to fall to 12.2% from 12.8% expected to close 2022. active population, in 2023. Ministry of Economy, Public debt To increase from 118.3% of GDP in 2022 to 115.2% in 2023.