Spain's General State Budgets for the year 2001

Automatic summary, not yet reviewed

1. The General State Budgets for 2001 are approved, with spending credits of 35,809,515,645 thousand pesetas (215,219,523.99 thousand euros) for the State, autonomous agencies, Social Security and other public bodies. Fiscal year 2001 is the last one drafted in pesetas, because the euro will enter circulation on January 1, 2002.
2. Pay for public sector staff and the wage bill for labor staff may not rise more than 2 percent compared to 2000, matching the forecast CPI. Public job openings are limited: new positions must not exceed 25 percent of the staff replacement rate, with exceptions such as the Armed Forces or local police.
3. Public pensions are increased by 2 percent in 2001, which protects their purchasing power. Maximum payment limits are set (316,422 pesetas monthly, 4,429,908 pesetas yearly), rules are laid down for top-ups to reach minimum pensions, and amounts are fixed for non-contributory pensions and the defunct Old Age and Disability Compulsory Insurance.
4. The Government is authorized to increase State debt, with the limit that the outstanding balance on December 31, 2001 may not exceed the January 1, 2001 balance by more than 972,659,809 thousand pesetas. Limits are also set on State guarantees, and guarantees of up to 300,000 million pesetas are authorized to help SMEs access credit.
5. On taxes, the monetary correction coefficients for personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. and corporate income tax are updated, cadastral values for the property tax are updated with the 1.02 coefficient, and fixed-amount State fees are kept. The 25 percent deduction for patronage programs is extended, and a new one is created for donations aimed at providing public services over the internet.
6. Social Security contribution bases and rates are set for 2001: the maximum contribution base is 415,950 pesetas monthly and the general rate for common contingencies is 28.30 percent. Contribution rates for the General Mutualities of Civil Servants are also updated.
7. Funding for local corporations and Autonomous Communities is regulated: shares in State taxes, compensation for tax breaks, advances for municipalities with collection delays, and the Interterritorial Compensation Fund, endowed with 146,564 million pesetas.
8. The legal interest rate is set at 5.50 percent and the late payment interest rate at 6.50 percent until December 31, 2001. In addition, monthly advance payments to the Catholic Church are set, and special National Lottery draws are planned for the Spanish Red Cross and the Spanish Association Against Cancer, among others.

Who it affects

• Public employees and public sector labor staff: Their pay rises by at most 2 percent, and there are limits on temporary hiring and public job openings.
• Pensioners: Their pensions are increased by 2 percent, with maximum payment limits and top-ups to reach minimum pensions.
• Workers, self-employed people and companies: Contribution bases and rates, value adjustment coefficients and installment payments change.
• Municipalities, provincial councils and Autonomous Communities: They receive shares in State taxes, compensation and advances under the rules set out in the law.
• SMEs and patronage entities: They can benefit from State guarantees and tax deductions for donations to priority patronage programs.

Words worth knowing

Aval (State guarantee)

A guarantee under which the State agrees to pay a debt if the borrower cannot pay it.

Coeficiente de actualización (adjustment coefficient)

A number applied to the purchase price of an asset to adjust it for inflation and calculate the real gain when it is sold.

Tasa de reposición de efectivos (staff replacement rate)

A limit that prevents opening more public job vacancies than needed to replace staff who leave.

Clases Pasivas (Passive Classes)

The pension scheme for civil servants that existed before the current Social Security system.

Mecenazgo (patronage)

Donating money to activities of general interest, such as culture or research, which gives the right to tax deductions.

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