The president of the Community of Madrid, Isabel Diaz Ayusoapproved this Tuesday his first solo budget. “A record” because it reaches the figure of 27,558 million euros, which represents 19.6% more compared to those approved in 2022, the last ones that went ahead. The economic situation allows it, as explained by the Minister of Economy and Finance, Rocio Albertwho recalled that Madrid is the autonomous community with the highest GDP in Spain.
The budgets, which as usual focus their largest items on Health (10,157 million) and Education (6,413)they dedicate the 90% of the total to social spendingbut Albert has pointed out today that the concept of social spending that they have in the Community It has nothing to do with what can be understood as aid. “It is a social expense understood budgetarily,” she said, that is, “investments in health, education or social services”: “We invest so that Madrid is more prosperous tomorrow.”
Tax deductions
Another issue that is clear in the budget presented today and that the counselor herself has highlighted is that it consolidates a downward taxation. The accounts “respond to the mandate of the polls,” he said, and it is true that the PP goes to them announcing its firm commitment to fiscal incentives and tax reductions. The decrease of half a point more in the regional section of personal income tax has been left for later, for when the situation allows it, the president has explained it this way several times. But in the accounts approved today the calculation of the new tax measures says that there will be a reduction “in the tax burden of more than 260 million euros for taxpayers.” With this, the regional government points out, “consumption and investments by Madrid residents are simultaneously encouraged to generate economic growth and employment.”
As the Community continues with its tax reduction, which in the next year will focus on the deflation of personal income tax already announced (a saving of 153 million), an incentive of up to 20% for investments arriving from abroad and some measures aimed at boosting life in rural areas, The regional government sees how the income it receives from the State is increasing. Albert has regretted that the 2024 budgets have had to be made by eye, with estimates from his study departments, because the Government of the nation has not yet provided “accurate information on payments on account and the settlement of 2022” .
State Revenue
But the forecasts indicate that they will grow. The PP complaints During the last few months they have been focused on the Government making money off of inflation, because by not lowering the taxes Collection grows at the same time as prices rise. According to the data provided by the regional government, the total income expected for next year amounts to 27,558 million euros, and of the estimates made, the Community of Madrid is responsible for 25,759 million euros for the transferred taxes (IRPF, VAT and Taxes). Special), which after the liquidation and corresponding contributions remain at 21,279 million euros, which represents 39.4% more than in 2022. Specifically, the budget brochure prepared by the regional government indicates that the state collection for VAT It has risen 70.5% in two years, which represents a total of 10,930 million euros.
It is with these quantities that the Community has established its distribution by councils, which are summarized as follows: Health, 10,157 million (36.9%); Education, Science and University, 6,413 million (23.3%); Housing, Transportation and Infrastructure, 3,089 million (11.2%); Family, Youth and Social Affairs, 2,605 (9.5%); Presidency, Justice and Local Administration, 929.7 million (2.4%); Employment Policies, 666.5 million (2.4%); Environment, Agriculture and Interior, 639.5 million (2.3%); Digitization, 512 (1.9%); Culture, Tourism and Sports, 316 million, (1.1%) and Economy, Finance and Employment, 310.2 million (1.1%).