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Spain passes 2023 budget with record social spending

AFP/The Local
AFP/The Local - [email protected]
Spain passes 2023 budget with record social spending
Spain's Minister of Budget Maria Jesus Montero speaks to media as she arrives prior the Parliamentary vote on 2023 draft budget at the Congress in Madrid in Noviembre 24, 2022. (Photo by Pierre-Philippe Marcou / AFP)

Spain's parliament on Thursday approved the left-wing government's budget for 2023 which includes record levels of welfare spending to help households grapple with soaring inflation.

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Lawmakers voted through the plan with 187 votes in favour and 156 against in what will be the last budget presented by Prime Minister Pedro Sánchez's government before a general election, which is due by the end of next year.

It was backed by Sánchez's Socialists and hard-left junior coalition partner Podemos with the support of smaller regional parties including the Catalan separatist ERC in exchange for greater regional investment.

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"This is the third budget we have approved with a large majority, a budget with historic levels of welfare spending," Sánchez tweeted after the vote.

The budget still needs to be rubber-stamped by the Senate within the next month but its passage there is guaranteed given the support it has won from the government's allies.

It outlines plans for a record spend of €198 billion ($206 billion) in 2023 that will mean higher pensions and public worker salaries, as well as increased funding for higher education and health.

It also extends free travel on commuter and medium-distance trains and some long-distance buses into 2023.

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The travel scheme was introduced on September 1st, with hundreds of thousands of people signing up for a measure initially slated to run until the year's end in a bid to ease soaring costs.

Budget Minister María Jesús Montero said six out of every €10 in the budget will go towards social spending, the highest proportion allocated for that purpose in Spain's history.

The budget will be partly financed by tax increases for high earners and cash from the European Union's Covid-19 pandemic recovery fund.

Spain is due to receive €140 billion from the fund over six years, making it one of the main recipients.

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