The Budgets improve unemployment benefits and give 100 euros per child


In the public accounts, from 1 January, an increase with pension inflation and the Minimum Vital Income will be taken into account

The Council of Ministers on Tuesday approved the General State Budgets, an agreement reached at dawn between PSOE and United We Can that will include the largest social spending in history. The aim, according to the Executive, is to ensure that retirees do not lose purchasing power, improve working class conditions and strengthen investment in health, education and dependency.

These are the most important measures known so far:


The accounts introduce an improvement in unemployment benefits, which will again be 60% of the legal salary base from the seventh month. This measure will benefit 300,000 people. In 2012, during Rajoy’s reign, it was reduced to 50%.


The new public bills include the increase in all pensions, whether premium or not, with the aim of “keeping the elderly in purchasing power” in the face of rising inflation, second vice president Yolanda Díaz told her Twitter account.


A parental benefit of 100 euros per month is included in the Budgets for families with children aged 0 to 3 years. It is a benefit that until now working mothers received and that is now being extended to all families.

Single-parent families with 2 children are also equated with the large families category.

In addition, the government commits to deal with a family law that will include new reconciliation permits. Díaz outlined that there will be permits for informal carers, permits to deal with unforeseen family circumstances or a new 8 weeks parental leave, but what these measures will entail is not yet specified.


A Dependency Shock Plan will be bolstered by €600 million with the aim of reducing waiting lists, bringing new benefits and improving working conditions for those who care, Díaz said.

Minimum living income

Similarly, Vice President Díaz announced that the Minimum Vital Income (IMV) will include an increase with inflation and pensions. The IPREM will be 600 euros per month from 1 January 2023.


The fiscal package was presented last Thursday. It includes an increase in taxes on high incomes, a new tax on large wealth, a reduction in corporate income tax bonuses and a reduction in personal income tax on income below 21,000 euros per year.

Macroeconomic Forecasts

Economic Vice President Nadia Calviño announced Monday that the government will increase its growth forecast for this year by one-tenth to 4.4%. However, that of 2023 falls by six tenths to 2.1%.

Source: La Verdad


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