Preparation and approvals for General Government Budgets (PGE) in 2023 stand out as a main objective for the Ministry of Finance and Public Function in the second half of the year.
This is reflected in the new edition of Harmony, the executive accountability report for the work presented by the Head of Government last Friday.
According to the Department led by María Jesús Montero, these public accounts will serve as the base for consolidating economic growth, strengthening the Welfare State, and addressing the consequences of the war. All of this will be supported by European funds to transform the production model.
In the coming months, the Department of Finance and Public Administration will continue to focus on measures to mitigate the economic impact of the war in Ukraine.
Key among these efforts is the processing of taxes on financial institutions and energy companies in parliament, aimed at implementing the energy saving and efficiency plan across the General State Administration and ensuring a more equitable distribution of war-related wages.
Measures to reduce inflation
Work in these first six months of the year includes taking steps to mitigate the effects of inflation driven by the war and its impact on households and the productive fabric.
The government approved initiatives to soften rising prices for the middle class and working class, protect vulnerable groups, and support the most affected sectors of the economy.
Tax deductions linked to the electricity bill have been extended, with a focus on reducing the VAT on electricity to a lower rate and maintaining relief measures through the year.
The extension of fiscal measures through year-end means the continuation of reductions in electricity taxes, a minimum tax aligned with European Union rules, and temporary suspensions where applicable. These actions seek to reduce the fiscal burden on electricity consumers and support electricity generation costs.
Additionally, the Ministry of Finance and Public Administration, through the Tax Office, has developed other measures such as fuel bonuses, support for affected sectors like carriers or energy-intensive industries, and, more recently, direct assistance to households with lower incomes.
Milestones reached
Apart from decrees responding to the war, the department led by María Jesús Montero has strengthened administrative capacities to implement the Recovery, Transformation and Resilience Plan. This includes the procedures for establishing the State Register of organizations interested in Strategic Projects for Economic Recovery and Transformation (Reperte) and its use across ministries.
Another milestone is the launch of a talent recruitment plan to address aging within the General State Administration.
During the first semester, the tax reform experts’ committee presented a White Paper outlining proposals. This document is under review by the Ministry of Finance and Public Administration, considering the current economic context and the need to continue supporting growth and the creation of quality jobs.
Citizen access to administration remained a priority, with notable initiatives such as expanding the Comprehensive Digital Assistance Administration (ADI) by adding a new Madrid-Getafe headquarters, alongside existing sites in Valencia and Vigo. In cadastral matters, the Direct Cadastre system now communicates with citizens via videoconference, improving accessibility and transparency.