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ARCHIVED - Good news for pensioners as Spain reveals the 2023 budget
Next year’s budget spending will break all historical records in Spain
The Spanish government has on Tuesday October 4 approved the draft General State Budgets of 2023, and the proposal is the most ambitious in the country’s history, providing 266 billion euros for social spending alone and several measures to mitigate the ongoing financial crisis.
Speaking after the meeting, the Minister of Finance, María Jesús Montero, highlighted that the objective of this budget is to traverse this period of “enormous uncertainty” caused by the war in Ukraine, while offering “security and stability” to families and sending a “clear message” abroad about the solvency and dynamism of the Spanish economy.
The numbers are based on a 2.1% growth forecast for next year and take into account measures already agreed, such as a wealth tax on entities with a net worth of more than 3 million, an income tax break for those earning less than 21,000 euros and an increase in corporation tax for large companies.
Pensions
Both contributory and non-contributory pensions will be reevaluated next year and will be increased in line with November’s CPI, which looks likely to close the month at 8.5%. This will mean a substantial rise in pension payments.
Free travel
All Renfe medium-distance and commuter trains will remain free throughout 2023 for those who book their regular passes in advance. The other discounted travel measures will be reviewed before the end of the year.
Affordable rent scheme
The Minister announced two measures regarding housing. The first is that the current aid package of 250 euros per month for people aged between 18 and 35 on low salaries will be extended throughout next year at a cost of 200 million euros.
In addition, a new ‘sustainable rental’ plan will be launched that will cost 260 million euros. The finer details of this scheme haven’t been released.
Dependency and IMV
To tackle the problems with healthcare in Spain, 600 million euros will be allocated to a shock plan aimed at reducing waiting lists and implementing new benefits and services.
The IMV will be adjusted upward in the same way the pension will be.
Green agenda
Again, the details are vague but the government has reiterated its commitment to creating more low-emission zones, protecting forest and the natural environment and focusing particularly on developing more bike lanes.
Child benefit payment
A 100-euro-per-month child-rearing benefit will be offered to parents of children under 3, once the adult is registered with Social Security or has received unemployment benefit.
Single mothers
From next year, single mothers of two children will be entitled to the same benefits currently applied to large families.
Civil servants
Civil servants will see their pay packets increase by a maximum of 9.5% until 2024.
Image: Pixabay
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