Spain's 1991 State Budget: spending, revenue and economic rules

Automatic summary, not yet reviewed

1. Approves the General State Budgets for 1991, covering the State budget, autonomous agencies, Social Security and other public entities, with non-financial spending credits of 19,525,052,239 thousand pesetas.
2. Limits the recognition of non-financial obligations to the initially approved credits, and caps extraordinary credits and supplements at 5 percent of initial credits. The Government will report quarterly to the Congress and the Senate.
3. Raises pay for non-labor public employees by 6.26 percent from January 1, 1991, and caps the wage bill growth of labor personnel at the same percentage.
4. Upgrades public pensions by an average 6.7 percent in 1991, with a combined maximum of 3,094,448 pesetas per year per person counting all their public pensions, and sets rules for minimum-income top-ups.
5. Regulates public subsidies and grants comprehensively for the first time: publicity and competition principles, beneficiary obligations, repayment and fines of up to three times the amount wrongly received.
6. Creates the State Tax Administration Agency (Agencia Estatal de Administración Tributaria), a public entity in charge of managing, inspecting and collecting State taxes, plus a specialized police unit against tax fraud.
7. Turns Correos y Telégrafos (the postal service) into an autonomous entity with its own legal personality, creates the Spanish Metrology Center and the National Institute for the Promotion of the Social Economy, and makes the National Library an autonomous entity.
8. Sets funding for municipalities, provinces and autonomous communities: percentages of participation in State taxes, the Interterritorial Compensation Fund with 128,844.9 million pesetas, and subsidies for urban public transport.

Who it affects

• Public employees and labor staff in the public sector: Their pay rises 6.26 percent in 1991, with specific rules for each group.
• Pensioners: Their pensions rise by an average 6.7 percent, with a combined annual cap of 3,094,448 pesetas.
• Companies and self-employed workers: Corporate income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. rates, subsidy rules, fees and tax licenses change.
• City councils, provincial councils and autonomous communities: They receive shares of State taxes and compensation funds under criteria set by the law.
• Taxpayers in general: Tax management, inspection and collection move to the new State Tax Administration Agency.

Words worth knowing

Créditos presupuestarios (budget credits)

The maximum amounts of money the law allows each public body to spend.

Revalorización de pensiones (pension uprating)

The yearly increase in pensions to offset the loss of value of money.

Masa salarial (wage bill)

The total amount paid in wages and social benefits to an entity's labor staff.

Fondo de Compensación Interterritorial (Interterritorial Compensation Fund)

State money meant to reduce development gaps between autonomous communities.

Avales del Estado (State guarantees)

Guarantees under which the State pays if a public entity fails to repay borrowed money.

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