Spain's 1992 State Budget: spending, revenue and rules

Automatic summary, not yet reviewed

1. The 1992 General State Budgets are approved. They include the State budget, autonomous agencies, Social Security and other public entities, with spending credits of 22,095,250,131 thousand pesetas.
2. The credits are funded by expected revenue (20,793,538,695 thousand pesetas) and by net borrowing. Tax benefits are also estimated at 1,340,975,000 thousand pesetas.
3. Pay for non-labor public employees rises 5% as of January 1, 1992, and the wage bill of labor (contracted) staff cannot grow more than that percentage. Salaries are also set for senior officials, civil servants, military personnel, police, judges and prosecutors.
4. Public pensions are updated with an average increase of 5.7% in 1992. Non-contributory Social Security pensions are set at 30,000 pesetas per month plus two extra payments, and there is a monthly cap of 233,631 pesetas per pensioner.
5. Social Security contribution bases and rates are set for 1992: the general rate for common contingencies is 28.80% (24% paid by the employer and 4.80% by the worker), with a maximum contribution base of 321,420 pesetas per month.
6. On taxes, the general Corporate Income Taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. rate drops to 35%, VAT goes to 13% (with a special 28% rate), and rates on some excise taxes, such as hydrocarbons, are reduced.
7. State contributions to municipalities, provinces and autonomous communities are regulated, with the rules for calculating and distributing their share of State taxes, and the Interterritorial Compensation Fund is funded with 107,491.9 million pesetas.
8. The economic module per school unit for government-subsidized private schools is set, along with the amounts students may pay as complementary funding, such as 1,000 pesetas per month in second-level vocational training.

Who it affects

• Public employees and labor (contracted) staff in the public sector: Their pay rises 5% in 1992, with specific rules for each group.
• Pensioners: Their pensions are updated by an average of 5.7%, with maximum and minimum amounts set by the law.
• Workers and companies: Social Security contribution bases and rates are set, and Corporate Income Tax, VAT and excise tax rates change.
• City councils, provincial councils and autonomous communities: They receive the rules and amounts of their share of State taxes and other subsidies.
• Families with children in government-subsidized private schools: The public funding modules for these schools and the amounts that may be charged to students are set.

Words worth knowing

Créditos presupuestarios (budget credits)

The maximum amounts of money the law authorizes each agency to spend.

Revalorización de pensiones (pension uprating)

The annual increase in pensions to offset rising prices.

Pensión no contributiva (non-contributory pension)

A pension paid without having contributed to Social Security before, for retirement or disability, when certain requirements are met.

Centros concertados (government-subsidized private schools)

Private schools that receive public funds in exchange for offering free school places.

Fondo de Compensación Interterritorial (Interterritorial Compensation Fund)

State money intended to reduce development gaps between autonomous communities by funding projects in the less favored ones.

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