Spain's state budgets for 2002, now in euros

Automatic summary, not yet reviewed

1. This is the first time the State General Budgets are drawn up in euros, since the new currency enters circulation on January 1, 2002.
2. It approves the state public sector's spending and revenue: credits of 214,208,303.27 thousand euros, funded by expected revenues and by new borrowing.
3. Pay for public sector workers can rise by no more than 2 percent, the same as forecast inflation, and public pensions are also increased by 2 percent.
4. Public sector hiring is restricted: new job openings cannot exceed 25 percent of the staff replacement rate, with exceptions for the Armed Forces, police, justice, teachers and firefighters.
5. Non-contributory pensions are set at 3,621.52 euros per year, and non-overlapping pensions from the abolished Old Age and Disability Compulsory Insurance at 3,833.20 euros per year.
6. On taxes, it updates 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, raises the cadastral value used for local property tax by 2 percent, and increases fixed state fees by the same coefficient.
7. Autonomous communities under the common regime are funded through transferred taxes, 33 percent of the personal income tax rate, shares of VAT and special taxes, and the Sufficiency Fund, which covers the gap between their spending needs and their fiscal capacity.
8. It sets Social Security contribution bases and rates for 2002: the maximum contribution base is 2,574.90 euros per month, and the common contingencies rate under the General Scheme is 28.30 percent.

Who it affects

• Public employees and public sector labor staff: Their pay and the total wage bill can grow by only 2 percent in 2002.
• Pensioners: Their pensions rise 2 percent, and those who lost purchasing power in 2001 receive a one-off compensatory payment.
• Taxpayers: Income tax and corporate tax coefficients are updated, and the cadastral value for local property tax and fixed state fees go up.
• City councils and autonomous communities: Their funding is regulated through shares of state taxes and the new regional financing system.
• Workers and companies: Social Security, unemployment and training contribution bases and rates are set for 2002.

Words worth knowing

Tasa de reposición de efectivos

Replacement rate: the share of departing workers (through retirement or other causes) that can be replaced with new hires.

Clases Pasivas

The former pension system for civil servants, now managed through Social Security.

Fondo de suficiencia

Sufficiency Fund: money the State gives each autonomous community to cover the gap between its spending needs and its revenue.

Saldo vivo de la Deuda

Outstanding debt: the total amount the State owes at a given time and has not yet repaid.

Beneficios fiscales

Tax benefits: exemptions and deductions that reduce the amount of tax paid.

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