Catalonia’s 2022 budget bill proposes all-time high public spending plan

The proposed 2022 Catalan budget will see record-high expenditure, with a historic increase aimed at consolidating the pandemic recovery and reactivating the economy. 

In total, public spending will rise to €38.139 billion if the bill is passed, an increase of €5.618 billion (+17.3%) on the 2020 budget.

European ‘Next Generation’ funds, aimed at stimulating the economy across the continent and aiding the recovery after the pandemic, accounts for €2.142 billion of the budget. 

The spending plan was presented in the Parliament on Tuesday afternoon by Catalonia’s economy minister, Jaume Giró. 

Parliamentary debates on the bill will take place from November 22 in the chamber, while it is expected that the voting will be held around December 23.

Social policies

Special attention will be given to social policies in the planned disbursement, as they will account for a total of 74.6% of the budget. The proposed bill aims to reinvigorate housing, the jobs market, and the culture sector in particular. 

In total, the governmental departments that will see the largest rises in their planned spending will be health (reaching a total of €11.171 billion, an increase of €1.456 billion), education (€6.681 billion total, up by €1.009 billion), social rights (€3.969 billion total, up by €905 million), and the ministry of vice presidency, digital policies and territory (€2.270 billion total, up by €511 million).

Public sector investment

Public sector investment will almost double compared to the last spending plan and will be allocated €3.951 billion of funds.

The accounts include increasing the number of staff in the public sector by 28,882 positions compared to 2020. 

Most of these new jobs will be in health, with 61% of the overall increase meaning 17,663 new positions, and education will see a growth of 19%, translating to 5,498 new jobs being created. 

Other areas with significant increases in investment are roads (€265 million), information and knowledge (€227 million), and railway infrastructure (€223 million). 

The total €3.951 billion is almost double that of the last budget in 2020, which saw €2.012 billion allocated to the public sector.

European funds

The planned increase in public spending is largely down to the funds allocated by Europe. ‘Next Generation’ pandemic recovery funds account for €2.142 billion of the €38.139 billion total.

The funds are aimed at stimulating the economy across the continent and aiding the recovery after the pandemic. 

The departments of social rights (€633 billion), education (€405 billion) and health (€309 billion) will benefit the most from the European funds 

In terms of policies, it’s planned to allocate €386 billion to an urban rehabilitation and regeneration plan, €246 billion to strengthen inclusion policies, €197 billion to a national digital skills plan, and €147 billion to a sustainable and safe mobility plan.

Uphill task for approval

The government will have to dig deep in order to see the proposed budget bill passed in parliament, as the support for how it is currently is not yet sufficient for approval. 

ERC and Junts per Catalunya will need the help of one more party in the chamber. 

Far-left pro-independence party CUP were the ones to facilitate this government coming into power following the election earlier this year, but it is not known yet whether they will greenlight the government’s spending plan. 

As a grassroots-oriented organization, CUP will poll its members this weekend on whether or not they should present a complete amendment motion.

If CUP decides to vote against the budgets, then the Socialists and En Comú Podem have both indicated that they would be willing to cooperate with the parties in power and see the budget passed. 

However, this would bring a separate set of potential issues, as Junts per Catalunya may not be willing to work with parties not explicitly in favour of Catalan independence. 

The minister for finance, Jaume Giró, warned that "it would be a pity" if "partisan interests" were to block the 2022 budgets from being approved, as he says they are "the most important ever presented in history."  

Presenting the spending plan to lawmakers and representatives from civil and economic society, Giró said the budget bill is a "turning point" for economic and social reactivation thanks to the increased expenditure. 

However, Giró admitted that the budget "could have been better" if Spain had responded to the request for an extraordinary fund to address the consequences of the pandemic.