What it is
Spain's 2006 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 27 September 2005. Introduced by: Gobierno.
Official title: Government bill on the General State Budget for the year 2006.
Source: Congreso de los Diputados, file 121/000053· updated 11 Nov
Automatic summary, not yet reviewed
- The 2006 budgets of the State and its agencies are approved, with spending credits of 269,831,745.51 thousand euros. The largest item is pensions, at 84,681,586.35 thousand euros.
- Public sector employee pay can rise by no more than 2% compared to 2005. Civil servants' extra pay includes 100% of the destination allowance in the December payment.
- Public sector hiring is limited to 100% of the replacement rate. There are exceptions for State law enforcement, the justice administration, local police, firefighters and teaching staff.
- Public pensions are increased by 2% in 2006. Minimum pensions rise between 5% and 6.5% depending on the case, and non-contributory pensions are set at 4,164.44 euros a year.
- Social Security contribution bases and rates are set for 2006. The maximum contribution base is 2,897.70 euros a month and the general rate for common contingencies is 28.30%.
- The State and regional income tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. brackets are updated to avoid so-called cold progressivity, that is, inflation making people pay more tax without real wage increases.
- Property cadastral values are updated by 2%, which can affect the property tax paid by owners.
- Fixed-amount State fees rise by 2%, except those created or updated in 2005. Passport and ID card fees are rounded to the nearest 10 cents.
Who it affects
- Public employees: Their pay rises by at most 2% and public hiring is limited to the replacement rate.
- Pensioners: Their pensions are increased by 2% and minimum pensions rise between 5% and 6.5%.
- Workers and companies: Social Security contribution bases and rates are set for 2006.
- Income tax payers: Tax brackets are updated to avoid paying more due to inflation.
- Property owners: Cadastral values rise by 2%, which can affect their property tax.
Words worth knowing
- Tasa de reposición de efectivos (replacement rate)
- The percentage of positions that can be filled to replace only employees who retire or leave.
- Progresividad en frío (cold progressivity)
- The effect whereby, when income tax brackets are not updated, inflation makes people pay more tax even if their real wages do not rise.
- Valor catastral (cadastral value)
- The value assigned to a property by the Cadastre, used as the base for the property tax.
- Complemento de destino (destination allowance)
- The part of a civil servant's pay that depends on the level of the position they hold.
- Pensión no contributiva (non-contributory pension)
- A pension granted to people with insufficient resources even if they have not contributed enough to Social Security.
- 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.
- Introduced27 September 2005Someone registers the text in the Congreso.
- Admitted27 September 2005The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
- Amendments29 September 2005Groups propose changes.
- Committee21 October 2005A committee goes through the text in detail.
- Plenary8 November 2005All 350 deputies vote.
- Senate16 November 2005The Senate can pass it, amend it or veto it.
- BOE22 December 2005It is published in the Official State Gazette (BOE) and comes into force.
See the 12 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:
- VIII Legislature, Senate Government bill on the General State Budget for the year 2006.
Published in the BOE: Law 30/2005, of 29 December, on the General State Budgets for the year 2006.
Sources
Where does all this come from?
- Congreso de los Diputados, file 121/000053
Official title, type, author, dates and stage.
Retrieved 11 November 2026
- BOE, BOE-A-2005-21525
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.