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What it is

Spain's 1989 General State Budget law

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 30 September 1988. Introduced by: GOBIERNO.

Official title: GOVERNMENT BILL ON THE GENERAL STATE BUDGET FOR 1989.

Follow this law

Source: Congreso de los Diputados, file 121/000097· updated 11 Nov

Automatic summary, not yet reviewed

  1. Approves the State public sector's spending and revenue for 1989: initial credits total 15,749,484,711 thousand pesetas, funded by expected revenue and by borrowing.
  2. Raises non-labor public employee pay by 4% as of January 1, 1989, and caps the wage bill growth of labor staff at that same percentage.
  3. Upgrades public pensions by an average of 4% in 1989 and adds 66,702 million pesetas to improve the lowest Social Security pensions and pay an extra installment to some pensioners in special schemes.
  4. Changes how Social Security health care is funded: the State contributes 1,102,893,000,000 pesetas to the Instituto Nacional de la Salud and extends health coverage to people without enough resources.
  5. Sets a monthly cap of 193,600 pesetas on the total public pensions a person can receive, with exceptions such as pensions arising from terrorist acts.
  6. Changes taxes: adjusts the personal income tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. rate scale for inflation, sets the general corporate tax rate at 35%, raises urban cadastral values by 3%, and adjusts VAT and excise tax rates.
  7. Regulates funding for municipalities, provinces and Autonomous Communities: municipalities receive 433,000 million pesetas and provinces 280,000 million pesetas as a share of State taxes.
  8. Turns the Instituto Nacional de Industria into a public law entity, with the State assuming its debt of 110,002,080,000 pesetas, plus the FORPPA debt of 209,291,000,000 pesetas.

Who it affects

  • Public employees and public sector labor staff: Their pay rises by 4% in 1989, with rules on allowances, productivity pay and the total wage bill.
  • Pensioners: Their pensions rise by an average of 4%, with maximum income caps and top-ups for the lowest pensions.
  • Taxpayers: Personal income tax rates, the corporate tax rate, local taxes and excise taxes all change.
  • City councils, provincial councils and Autonomous Communities: They receive amounts fixed by the law as their share of State taxes, under set distribution rules.
  • Patients and users of public health care: The State funds Instituto Nacional de la Salud health care and coverage is extended to people without enough resources.

Words worth knowing

Clases Pasivas
The pension scheme for State civil servants, separate from Social Security.
Revalorización
The annual pension increase meant to offset the loss of purchasing power.
Haber regulador
The amount used as the base to calculate the size of a pension.
Entidad de Derecho Público
A public body with its own legal personality, governed mainly by private law in its activity.
Complemento de destino
The part of a civil servant's salary that depends on the level of the job they hold.
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.

  1. Introduced30 September 1988Someone registers the text in the Congreso.
  2. Admitted30 September 1988The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsno dateGroups propose changes.
  4. Committeeno dateA committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senateno dateThe Senate can pass it, amend it or veto it.
  7. BOEno dateIt is published in the Official State Gazette (BOE) and comes into force.
See the 2 official steps on a timeline
Sept 198811. 30 September 1988: Presentación22. 30 September 1988: Calificación

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 37/1988, of December 28, on the General State Budgets for 1989.

Sources

Where does all this come from?

  • 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.

Read the full method · Report an error