• PGE 2023 PSOE and United We can agree on the 2023 Budgets after overcoming their social differences

The Government approves today in the Council of Ministers the project of the General State Budgets for 2023. The two parties that are part of the coalition, PSOE and United We Can, have hurried until the last minute the negotiations of the text, which includes an important package in terms of taxes, with increases to the highest incomes and relief for the most vulnerable.

These are the latest Budgets of the legislature and the Executive must now negotiate with the rest of the political parties in search of support to carry them forward in Congress, in such a way that, as stipulated by the Law, they are in force on January 1.

The PGE project arrives with adjusted economic forecasts: the Executive recalculates its forecasts for this year (it contemplates a growth of 4.4%) and especially for the coming year (with a significant reduction, up to 2.1%).

These Budgets were also drawn up at a time when the labor market is beginning to show signs of slowing down in its recovery and with inflation levels still very high.

But beyond the macroeconomic figures surrounding the project, this Tuesday some of the novel aspects included in what was agreed between the two government partners were revealed.

check for mothers

In the first place, the PGE project for 2023 contemplates the inclusion of a check of 100 euros for all families with dependent children between 0 and 3 years old.

It is a matter of giving

this aid a

universal character , since until now it was only valid for working mothers.

Unemployment benefit

An increase in unemployment benefits is also included, until reaching 60% of the regulatory base from 6 months of benefit.

This measure, according to Yolanda Díaz on her social networks, will benefit some 300,000 unemployed people.

rise of officials

The accounts include the rise in the salaries of officials, which the Government failed to agree on Monday with all officials.

The Treasury will apply a 9.5% increase between 2022 and 2024, and has the support of the UGT and CCOO, but not of CSIF, which considers it insufficient.

Officials have already received a 2% salary increase in 2022, to which the retroactive 1.5% proposed by the Treasury will be added, which adds up to 3.5% for this year.

For 2023, the Executive sets an increase of 2.5%, to which two variables of 0.5% are added.

The salaries of public employees would rise an additional 0.5% if the accumulated CPI for 2022 and 2023 exceeds 6%, and another 0.5% would be added if the GDP for 2023 exceeds 5.9%.

The offer is completed with a 2% increase in 2024, again with a clause to increase the salary by 0.5% in the event that the accumulated CPI for 2022, 2023 and 2024 exceeds 8%, according to Europa Press reports.

increase in pensions

Next year's accounts will also have to deal with updating pensions according to the interannual CPI for the month of November, which could be between 7% and 8%, according to experts, which will mean a very important.

historical spending

Last July, the Council of Ministers approved the non-financial spending limit for 2023, known as the 'spending ceiling', which amounts to 198,221 million euros, a new record, 1.1% higher than that of 2022 , including 25,156 million European funds and a transfer to Social Security of 19,888 million, 8.1% more than last year.

The public deficit would be reduced to 3.9% of GDP, according to the latest Government forecasts, although the Treasury has recently presented a new fiscal package to deal with the current situation, with which it intends to raise an additional 3,144 million euros.

Taxes

Among the most relevant fiscal measures that will accompany the Budgets, the reduction of the Personal Income Tax (IRPF) for work income below 21,000 euros stands out.

The taxation of capital income in personal income tax of more than 200,000 euros will also be raised one point, up to 27%, and for capital gains of more than 300,000 euros, it will be raised to 28%, two more points.

Likewise, income from work from 15,000 euros (1,000 euros more than now) will be exempt from paying personal income tax, while in VAT, the rate will be lowered from 10% to 4% for feminine hygiene products, of which condoms and non-medicinal contraceptives.

Also in this tax, the net yield of modules for the self-employed will rise by 5% and the reduction for deductible expenses that are difficult to justify in taxation under the simplified direct estimation regime will be increased from 5% to 7%.

The fiscal package also includes changes in the Corporation Tax.

Specifically, the nominal rate is lowered from 25% to 23% for small companies with a turnover of less than 1 million euros.

Likewise, in this tax, the possibility of compensating the losses of the subsidiaries in the consolidated groups will be limited to 50%, which will affect 3,609 large companies and will be temporary.

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  • personal income tax

  • Add

  • Minister council

  • GDP

  • Social Security

  • CCOO

  • UGT

  • Yolanda Diaz

  • United We Can

  • PSOE

  • State's general budgets

  • Unemployment