Government-common budget pact: new rates for large estates and without tax reductions

The Government first worked with social agents, unions, cultural associations and the Third Sector the viability of the Generalitat's budgets for 2023.

Thomas Osborne
Thomas Osborne
14 December 2022 Wednesday 10:30
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Government-common budget pact: new rates for large estates and without tax reductions

The Government first worked with social agents, unions, cultural associations and the Third Sector the viability of the Generalitat's budgets for 2023. They said yes. Now he has achieved it from the first of the political parties that he has in contention: En Comú Podem. Pere Aragonès and the leader of the commons in Parliament, Jéssica Albiach, staged the agreement this afternoon at the Palau de la Generalitat. Three of the most significant measures are promoting the tax on large vessels, an increase of a minimum of 279 million euros for primary health care (which represents an increase of 15.3% compared to the 2022 budget), or the Commitment to adjust the wealth tax rate with the aim of incorporating new rates for high net worth individuals in line with the state tax on large fortunes. It will affect all those who exceed 10.6 million euros in assets. There are no tax reductions or modifications in personal income tax and there is a social rescue of 555 million euros. The commons asked for 1,000 million and Aragonès had estimated it at 300 million.

But the Catalan Executive still lacks 27 seats so that the accounts can be processed in Parliament. They should come from the PSC (33 deputies) or Junts (32). Or of both at the same time, as the Cabinet of Pere Aragonès has suggested in recent weeks. Salvador Illa, first secretary of the Catalan socialists, has warned today that the pact continues to be green and that its formation does not feel pressured. Post-convergents continue to frown, though they are willing to discuss the numbers.

The agreement covers up to seven areas and aspects that have been redirected. An example: the commercialization of energy will also be analyzed to cover the most vulnerable families.

In any case, the first stone has already been laid and these are some of the measures agreed between the Government and the taxes:

Promote the creation of a tax on port emissions from large vessels. It is a measure already agreed upon last year, but the Government agrees to move it forward and start the parliamentary process between the months of January and February 2023. This tax taxes the emissions of nitrogen oxides from those large vessels that dock and depending on the maneuvers you perform.

The creation of the tax on ultra-processed foods is promoted, already agreed for 2022. The parliamentary process will take place during the third quarter of 2023 and the income obtained will be redirected to a specific fund to support sustainable farms in the primary sector.

Adjustments in the wealth tax rate to create new rates that are adapted to those derived from the state tax on large fortunes. The Government intends to guarantee that the increase in the collection of the corresponding tax contribution remains in Catalonia. It is a point that Esquerra demanded of the PSOE when the Government of Pedro Sánchez announced its intention to create a tax on great fortunes. It is expected that the amount to be collected by the Generalitat will be around an increase of 12 million euros from the resources available to it.

There are also modifications in the tax on empty houses. It will apply to large forks. Specifically, it increases by 33% and the bonus calculation system is reformed with the change "of the quotient that is currently used to calculate the bonuses (number of social rental homes over the number of empty homes) by a quotient where empty homes and homes ceded for social rental are added to the denominator.With this change, the percentage of bonus to which one is entitled is reduced." Likewise, there is a bonus for two years and 100% through the Legal Acts Tax Documented (AJD) to "the public deeds granted to formalize acts or contracts related to the promotion of housing of housing cooperatives in assignment of non-profit use and social initiative".

One of the most extensive sections of the budget agreement between the Government and the commons is that of Health. The total is 11.6 billion euros. The Catalan Executive promised at the beginning of the legislature to advance towards 25% in primary care of the total budgeted for Health. Now a minimum of 279 million is increased, which represents an increase of 15.3% compared to current budgets. With this, 20% of what is budgeted in Health for primary care is reached. The Generalitat intends to reach 2,350 million of the total for the Department. In addition, 100 million euros will be invested to avoid that the waiting list for the attention of a general practitioner does not exceed five days.

Likewise, 400,000 euros are allocated to improve care for people suffering from covid. There is also room for mental health, a line that Aragonès has insisted on since the beginning of his legislature. Thus, 20 million euros will be dedicated to "consolidate support measures for young people and adolescents to prevent psychological suffering and mental health problems." For suicide care, 1.8 million euros are allocated to guarantee the execution of the Suicide Prevention Plan 2021-2025.

One of the requests of the commons for 2022 is once again reflected in the 2023 budgets: oral health. 40.8 million euros from the Generalitat budget will be allocated to this area so that the deployment of Law 12/2022 on oral health continues through the following actions: complete the deployment of hygienists up to 365 and expand both the target population in vulnerable groups and health problems, incorporating diabetics, as well as the procedures to deploy the service portfolio, including endodontics. This entails strengthening the number of dentists in primary care.

A guarantee period of 6 months is established for breast reconstruction interventions after a total mastectomy and 350,000 euros will be added to the capacity of the public health system to attend surgeries derived from the transition processes of trans people, " through the incorporation of new centers that participate in the surgical body modification program for those interventions that are not of high complexity”.

After the signing, Albiach appeared at a press conference. He has affirmed that after the negotiations, "which have been very difficult", the bases have been laid "to redistribute the costs of inflation" to benefit workers and the middle class. "Common sense wins: in the energy field, to improve the right to housing, reinforce public health, that Catalonia is a country of trains, and that those who have the most pay," Albiach said. The leader of the commons In Parliament, he has assured that he has the firm commitment of the president to "keep intact" the agreement, regardless of whoever the next party that may be added to a pact for the 2023 budgets is. Regarding the possible incompatibility with Junts, he has stressed that the problem " It is not who, but what" is agreed.

The Ministers of the Presidency and the Economy, Laura Vilagrà and Natàlia Mas, appeared just after. "It is a good agreement, for the country," Vilagr stressed, since it responds, as she has said, to the social, economic and reinforcement challenges of public services. All in all, the head of the Presidency has warned that the negotiation continues with the PSC and Junts: "We hope to reach an agreement soon", Vilagrà has stated, while trusting that the Government will be able to approve the budgets in "the next few days" in Government Council to later be able to process them in Parliament. In fact, she has highlighted that the sectoral meetings with the PSC and Junts will end this week.