On Thursday, Parliament approved the 2021 Budget with the support of 11 parties and 188 votes, including Catalan and Basque separatists. Thus, the future of the new accounts, the first of the minority, left-leaning coalition government, is finally clear. They would come into effect on January 1, leaving behind those of 2018, drawn up by the previous PP government and still in force. The budgetary plan includes broad tax increases and the birth of the Tobin and Google taxes.
spain budget 2021
Joan Tapia | Yesterday, the Spanish Parliament rejected, with a large majority the complete amendments to the 2021 budget. It is an important step towards political stability and the possibility of creating an economic policy to fight the crisis. From the economic point of view, the Budget may be substantially improved, but we have the government that we have, PSOE with Podemos. So the accounts for 2021 – in the midst of great world uncertainty – are far from being the worst possible.
Spain sent yesterday the Budget Plan for 2021 to the European Commission. It estimates an increase in absolute terms of 33.44 billion euros (+7.3% per year) thanks to the increase in activity and by fiscal measures. The proposal is based on a non-financial spending limit of €196.09 Bn, 53.7% higher than that approved in February. The new macroeconomic framework forecasts a fall in GDP of 11.2% this year, with an unemployment rate of 17.1%, and a growth of 7.2% in 2021.