Spain's 2017 State Budget: spending, pensions, pay and taxes

Automatic summary, not yet reviewed

1. The 2017 State Budget is approved. Spending credits of 355,111,179.21 thousand euros are set for the State, its autonomous agencies, Social Security and other entities, funded by expected revenues and by borrowing.
2. Pay for public sector staff cannot rise more than 1% in 2017 compared with the amounts in force on December 31, 2016. Base salaries and seniority payments for civil servants are also set by group.
3. The public sector replacement rate is generally set at 50%, but can reach 100% in priority sectors such as education, health, security and research. An additional rate is also created to stabilize temporary employment between 2017 and 2019.
4. Social Security and Clases PasivasClases Pasivas Public pension scheme for civil servants, mainly those who joined before 2011. pensions rise 0.25% in 2017. Minimum pension amounts and top-up payments for people with low income are also set.
5. The State may borrow so that the outstanding debt balance on December 31, 2017 does not exceed the January 1, 2017 balance by more than 52,824,424.51 thousand euros. Limits are also set for public guarantees.
6. Under VAT, live cultural shows and frames for prescription glasses move to the 10% rate. State fees are raised by applying a coefficient of 1.01 to the 2016 amounts, with some exceptions.
7. Social Security contribution bases and rates are set for 2017: the maximum contribution base is €3,751.20 per month and the general rate for common contingencies is 28.30%, split between employer and worker.
8. Local governments share in State taxes through transfers of personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings., VAT and special taxes, with advance payments and final settlement formulas. Subsidies for urban public transport and advances for city councils are also regulated.

Who it affects

• Public employees and public sector staff: Their pay cannot rise more than 1% and limits apply to hiring new staff.
• Pensioners: Their pensions rise 0.25%, and minimum amounts and top-ups are maintained.
• Workers and companies paying Social Security contributions: Their contribution bases and rates are set, with a maximum base of €3,751.20 per month.
• City councils and other local governments: They receive shares of State taxes, subsidies and advances under the rules of the law.
• Taxpayers in general: Some VAT rates change and State fees are updated.

Words worth knowing

Tasa de reposición (replacement rate)

Maximum percentage of new positions an administration can fill, calculated from the permanent staff who left service the previous year.

Clases Pasivas

Public pension scheme for civil servants, mainly those who joined before 2011.

Avales públicos (public guarantees)

Guarantees given by the State to cover a debt if the borrower cannot pay it.

Complementos por mínimos (minimum top-ups)

Money added to a low pension to reach the minimum amount set by law.

Entregas a cuenta (advance payments)

Monthly advance payments made on account of the final settlement calculated at the end of the fiscal year.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries