Aragón presents the largest budget in its history with tax cuts

Without major disagreements and in apparent harmony, the PP-Vox Government of Aragon presented this Monday the budgets for 2024, the highest in its entire history.

Oliver Thansan
Oliver Thansan
05 November 2023 Sunday 15:27
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Aragón presents the largest budget in its history with tax cuts

Without major disagreements and in apparent harmony, the PP-Vox Government of Aragon presented this Monday the budgets for 2024, the highest in its entire history. In total, the item amounts to 8,546 million euros, 3.6% more than the previous one, and includes tax reductions already announced in the campaign - personal income tax, inheritances, donations - and record figures for social policies.

The Aragonese president, the popular Jorge Azcón, defended during his presentation that these are “ambitious and realistic” accounts, with which they aim to “solve problems” of the present to look to the future “with optimism.” For next year, Aragón forecasts regional GDP growth of 1.8% and an unemployment rate of 8.4%.

Vice President Alejandro Nolasco, from Vox, was also “happy,” assuring that the budget includes what was agreed in the government pact signed in August between both parties and includes measures to fight against depopulation and for the development of the territory, your competition.

Those present made an effort to highlight that these accounts reinforce the quality of public services in the region, which add up to 56% of the total available resources. Among the most favored items is healthcare, which grows by 9%, something that will have a special impact on the item allocated to the Aragonese Health Service (HEALTH) or on the resources diverted to mental health care and the reduction of waiting lists.

The education departments also benefit, with an increase of 12%; or social welfare and family, which grows by 7.7% and includes 150 million euros for dependency.

The other strong point of the document, which must now be approved by the Cortes, are the tax reductions, with an initial impact on the regional coffers of around 52 million euros, although the implementation of a new environmental tax on the exploitation of wind and photovoltaic parks.

The measure with the greatest weight will be the deflation of personal income tax, which will affect some 730,000 taxpayers in the community. In total, it represents a loss of 28 million with which the Executive says it wants to help families combat inflation. Within the same framework, a 25% deduction on personal income tax for expenses derived from extracurricular activities of minors is introduced, and taxpayers will be able to deduct the amounts intended to pay for support or reinforcement classes received by their descendants.

Likewise, it is estimated that some 16,000 Aragonese will save around 20 million euros after the Government raises the minimum exemption from the wealth tax from 400,000 to 700,000 euros, a figure in line with national parameters.

In addition, changes in inheritance and gift taxes will reduce income to public coffers by around 4 million. The total bonus on inheritances received by those under 21 years of age, something that only affects about 150 taxpayers, will mean savings of 1 million. The other 3 are the product of the exemption for living donations of up to 500,000 euros between parents and children.

“Aragon had one of the worst tax systems and now it is fairer,” insisted Azcón, who throughout the electoral campaign called the situation in the community “fiscal hell.”

Beyond the figures, the speed in carrying out these budgets (86 days) and the lack of public disagreements demonstrate the good harmony that prevails today within the regional coalition.

The same cannot be said of their relations in the City Councils of Huesca or Zaragoza, where the PP governs alone with specific support from an increasingly difficult extreme right to deal with in its national campaign to gain weight in the town councils where its votes are necessary. .