What it is
Spain's 1998 State Budget: spending, pay, pensions and taxes
BOE step 7 of 7 · PassedIt is a government bill. Introduced by the Government. It was introduced on 29 September 1997. Introduced by: Gobierno.
Official title: Government bill on the General State Budget for 1998.
Source: Congreso de los Diputados, file 121/000082· updated 11 Nov
Automatic summary, not yet reviewed
- The 1998 State Budget is approved. Credits for non-financial spending total 30,980,516,337 thousand pesetas, funded by expected revenues and net borrowing.
- Public sector pay rises by at most 2.1% in 1998, matching expected inflation. Public job openings are limited to priority sectors, and new positions must be below 25% of the staff replacement rate.
- Public pensions, both under the State's passive classes scheme and contributory Social Security, are increased by 2.1% in 1998. Non-contributory pensions are set at 521,920 pesetas a year.
- For personal income tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. (IRPF), the exempt limit for lump-sum unemployment benefits rises to 1,000,000 pesetas, family deductions increase, and the tax brackets are simplified by removing two of them.
- The Value Added Tax reduced rates are modified, for example for animal and human medicines, books, newspapers, and government-subsidized housing.
- The tax on insurance premiums rises to 6%, and State fees go up by 6%, except those created or updated in 1996 and 1997.
- The State sets the share of municipalities and provinces in State taxes, and the percentages of the Autonomous Communities in State revenues for the 1997-2001 five-year period.
- Social Security contribution bases and rates are set for 1998: the maximum contribution base is 392,700 pesetas a month, and the general rate for common contingencies is 28.3%.
Who it affects
- Public employees and public sector workers: Their pay rises by at most 2.1%, and hiring of new staff is tightly limited.
- Pensioners: Their pensions rise by 2.1%, with maximum income limits and minimum amounts set by the law.
- Personal income tax (IRPF) taxpayers: Family deductions, tax brackets, and the exemption for lump-sum unemployment benefits change.
- Businesses and self-employed workers: Their Social Security contributions, corporate tax installment payments, and fees change.
- City councils and Autonomous Communities: They receive the funding set by their share in State taxes and revenues.
Words worth knowing
- Revalorización de pensiones
- Annual increase in pensions to offset rising prices.
- Tasa de reposición de efectivos
- The percentage of workers leaving (through retirement or other causes) that can be replaced with new positions.
- Deflactar
- Adjusting tax brackets so that inflation does not make people pay more tax.
- Saldo vivo de la deuda
- The total amount the State owes at a given time and has not yet repaid.
- Complemento para mínimos
- An extra payment ensuring a pension does not fall below the legal minimum amount.
- 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.
- Introduced29 September 1997Someone registers the text in the Congreso.
- Admitted30 September 1997The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
- Amendments1 October 1997Groups propose changes.
- Committee15 October 1997A committee goes through the text in detail.
- Plenary6 November 1997All 350 deputies vote.
- Senateno dateThe Senate can pass it, amend it or veto it.
- BOE23 December 1997It is published in the Official State Gazette (BOE) and comes into force.
See the 11 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.
The same initiative in the other chamber:
- VI Legislature, Senate Government bill on the General State Budget for 1998.
Published in the BOE: Law 65/1997, of December 30, on the General State Budget for 1998.
Sources
Where does all this come from?
- Congreso de los Diputados, file 121/000082
Official title, type, author, dates and stage.
Retrieved 11 November 2026
- BOE, BOE-A-1997-28052
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.