What it is
Spain's 1987 General State Budget law
BOE step 7 of 7 · PassedIt is a government bill. Introduced by the Government. It was introduced on 26 September 1986. Introduced by: GOBIERNO.
Official title: Government bill on the General State Budget for 1987.
Source: Congreso de los Diputados, file 121/000009· updated 11 Nov
Automatic summary, not yet reviewed
- The law approves the General State Budget for 1987, covering the State budget, autonomous agencies, Social Security, Spanish Radio and Television and other public entities. Consolidated spending credits total 13,399,657,518,000 pesetas.
- Pay for non-labor public employees rises 5% from January 1, 1987, and the wage bill for labor staff cannot grow more than that percentage. An additional fund of 7,000 million pesetas is created for pay improvements negotiated with unions.
- Public pensions are revalued in 1987 with a 5% increase over the amounts paid on December 31, 1986, both in Clases Pasivas The pension system for State civil servants, which preceded the current Social Security system. and Social Security. A monthly cap of 187,950 pesetas applies when several public pensions are combined.
- The State may borrow in 1987 until the outstanding debt exceeds the January 1, 1987 balance by up to 1,410,000 million pesetas. The Treasury may also use interest-free credit lines from the Bank of Spain.
- The personal income tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. (IRPF) rates are kept, and tax deductions are adjusted, including those for buying a home and for investing in listed securities. Non-resident individuals are generally taxed at 20%.
- The general corporate tax rate drops to 35%, with a 15% deduction for investments and a 500,000-peseta deduction per person-year of job growth. The withholding rate on investment income is set at 20%.
- City councils receive 305,024 million pesetas from their share of State taxes, and provincial councils and island councils 19,032 million. Provisional revenue-sharing percentages for the Autonomous Communities are set for the 1987-1991 period.
- The Interterritorial Compensation Fund is funded with 141,000 million pesetas to finance investment projects in the Autonomous Communities. Each Community must approve a regional development program for 1987-1990 before July 1, 1987.
Who it affects
- Public employees and labor staff in the public sector: Their pay rises 5% in 1987, with new rules on extra payments, allowances and reduced working hours.
- Pensioners: Their pensions are revalued by 5%, with a monthly cap of 187,950 pesetas when several public pensions are combined.
- IRPF and corporate taxpayers: IRPF rates stay the same with adjusted deductions, and the general corporate tax rate becomes 35%.
- City councils, provincial councils and Autonomous Communities: They receive shares of State taxes and funds from the Interterritorial Compensation Fund.
- Families with children in state-funded private schools: The economic modules of public funds supporting these schools are set.
Words worth knowing
- Clases Pasivas
- The pension system for State civil servants, which preceded the current Social Security system.
- Haber regulador
- The amount used as the basis for calculating a civil servant's pension.
- Aval
- A guarantee by which the State agrees to pay a debt if the borrower does not repay it.
- Fondo de Compensación Interterritorial
- A public fund that finances investment projects in the Autonomous Communities to correct imbalances between regions.
- Masa salarial
- The total of salary and non-salary payments a public administration makes to its labor staff.
- 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
Where it stands
How far did it get?
It took 7 of 7 steps. It reached BOE, and today it is passed.
- Introduced26 September 1986Someone registers the text in the Congreso.
- Admitted26 September 1986The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
- Amendmentsno dateGroups propose changes.
- Committeeno dateA committee goes through the text in detail.
- Plenaryno dateAll 350 deputies vote.
- Senateno dateThe Senate can pass it, amend it or veto it.
- BOEno dateIt is published in the Official State Gazette (BOE) and comes into force.
See the 2 official steps on a timeline
Was there a plenary vote?
We have no plenary vote linked to this law in the Congreso’s data.
What happens next
What happens now?
It is law, or will be once published in the BOE. It comes into force on the date its own text sets.
Published in the BOE: Law 21/1986, of December 23, on the General State Budgets for 1987.
Sources
Where does all this come from?
- Congreso de los Diputados, file 121/000009
Official title, type, author, dates and stage.
Retrieved 11 November 2026
- BOE, BOE-A-1986-33382
The law as published.
Retrieved 11 November 2026
- The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
- Each deputy’s province is the one of their seat on the day of the vote.
- We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.