Maria Jesus Montero, Minister of Finance, has presented in Congress the draft General State Budget for 2022. In the case of the distribution of real public investment by autonomous communities, there will have been important changes in this aspect.
According to the documentation released by the Ministry of Finance, Catalonia will have 231 million more in public investment compared to 2021. On the other hand, Madrid will lose about 100 million. This represents 6% more funds and 8% less, respectively.
Specifically, and in total, the Territorialized public investment in Catalonia will be 2,230 million, while in Madrid it will drop to 1,151 million. In fact, the Community chaired by Isabel Díaz Ayuso will receive 8.9% of public investments nationwide, when in 2021 it is receiving 10.3%.
Instead, the proportion for Catalonia gets better. It will rise to 17.2%, when before it was 16.5%. All in all, the region that will receive the most investment will be Andalusia, with 2,267 million, 121 million more.
Consulted by the press about these changes during the presentation of the Accounts, Montero has indicated that Madrid has important amounts in the section of non-territorialized investments. In addition, he has argued that the investment item for the Community has improved in the last four years by 42.6% compared to the mandate of Mariano Rajoy.
In total, the autonomous communities will receive more than 126,000 million euros, adding the financing system, European funds and extraordinary resources, such as the compensation to the regions for unpaid VAT in 2017 and the negative settlement in 2020.
By ministries, the Budgets reflect an important improvement for Culture, with 48.4% more funds, and Consumption, with 46.7%. However, they are precisely Ministries with little economic weight in terms of spending.
This falls on the Ministry of Inclusion, Social Security and Migrations, whose budget also grows by a notable 32.1%, to 18,396 million euros, thanks to the transfer from the State to cover extraordinary expenses of this department.
For its part, Equality it will have 500 million more, 14% more for conciliation policies.
Expenses and income
The Tax agency it also reflects record spending capacity. Montero explained that the entity will have 1,700 million for its activity in 2022, a “historic” amount, Montero has indicated, and 100 million more than in 2021. Thus, the agency will have 1,040 more troops to combat tax fraud.
As explained by Montero, public revenue in 2022 will reach 39.5% of GDP, while public spending will be 44.5%. It should be remembered that this Budget project includes record spending on social policies. Specifically, some € 248 billion, a historical figure in which European funds are also, some 27,633 million planned for 2022.
There are 46% more funds to policies of living place. Something that is closely related to the budget increase for youth initiatives: 12,550 million more than in 2021, 83% more.
Of these, some 210 million have been raised for the cultural youth voucher just announced by Pedro Sánchez and another 2,199 million for scholarships for education. It is worth remembering the important role that Next Generation funds will play in 2022, which will represent more than 27,000 million euros.
Among other issues, with these funds it will be possible to increase investment in dependency, which will grow by 23.3%, while in health it will increase by 11% and in education by 2.3%. In addition, there is an “unprecedented bet” on R & D & i and digitization, with record games of almost 13.3 billion.
Pensions will eat the biggest piece of the social spending pie, with 171,165 million, 4.8% more than in 2021. All in all, the revaluation of taxes is separated from the Budgets. All in all, the contributory pension is expected to rise by 2.2% and the minimum by 3%.
Fall in unemployment
This will have a commensurate impact on the Minimum Living Income (IMV), since it is measured with the minimum benefits.
In this sense, and considering the disadvantaged population and the increase in electricity prices, the item for the thermal social bonus will rise 43%, which will benefit 1.2 million households, according to the Executive. The only item that will fall are items earmarked for unemployment, due to the improvement in the labor market.
Finally, the main fiscal change included in Budgets has been the minimum rate of 15% for Corporation Tax. Montero has calculated that an extra 400 million will be entered from 1,070 companies, “a small part of our productive fabric.”
The spending ceiling of these Budgets It will be about 196,142 million, a record figure, although it is still a slight increase (of less than 1%) compared to the 2021 non-financial spending limit.
In addition, the ‘macro’ forecast that GDP grows 6.5% this year and 7% next, although the Bank of Spain is not so optimistic.
In fact, by the end of the year, the vice president Nadia Calvin has ensured that all the daily economic activity and jobs lost by the pandemic will have been recovered. In other words, the first quarter of 2022 will be the first with ‘net’ growth compared to 2019.