The Government of Spain approves the draft budget for 2023, with a significant increase in social spending. This arises after the agreement reached between the socialist party, headed by the President of the Government of Spain Pedro Sánchez and its main partners United We Can, led by the Second Vice President and Minister of Labor and Economy, Yolanda Díaz.
The budget also includes a 6.5% increase in defense, which, together with European funds and special modernization programs, represents a 25% increase in spending. With this, it is intended to move towards the commitment that Spain has reached with NATO to allocate 2% of GDP to that item in 2029.
Increase in social spending
Social spending is the item that grows the most, with increases in pensions, health, public transport services and education. All this, according to the Minister of Finance, will allow Spanish families to cope with inflation.
In the first case, the increase is 6.6% compared to the previous year, and the increase in health spending of 6.7%, which includes items for primary care, highly stressed after two years of the pandemic, and for mental health , an issue that has entered the Spanish political agenda in the last year.
María Jesús Montero, Minister of Finance and Public Administration of Spain, explained in a press conference that these measures are:
“Public accounts that offer security and stability to Spanish families and that send a clear message abroad about the solvency and dynamism of our economy: prudence, responsibility, social justice and economic efficiency.”
At the same press conference, Nadia Calviño, Minister of Economy and First Vice President of the Government, spoke about the growth forecasts for Spain. She this she has warned of lower growth for Spain in the coming year mainly due to the high uncertainty, marked by the high rate of inflation and an international context of energy crisis.
However, it affirms that for this year the expected growth will be 4.4%: This assures that it is: “Even higher than what was expected until now, and it is a prudent forecast.”
At the moment these budgets are not guaranteed, since they still have to be approved by Congress. There, the coalition does not have a majority, since there are only 155 deputies and the absolute majority is 176, so they will have to begin negotiations with other parties to obtain sufficient support.