Spanish government announces increased social spending in 2023 budget deal

Spain's coalition government partners, the Socialists and Unidas Podemos, announced a 2023 budget deal that, if approved, will see €266.189 bn go towards social spending.

This means 60% of the budget will be allocated to social programs, "the highest amount ever," according to finance minister María Jesús Montero.

The agreement includes €660m to extend the measure fully subsidizing short- and medium-distance Renfe trains throughout 2023 as well as €100 grants for households with children 3 and under.

"Single mothers with two children will also be entitled to receive large family benefits," vice president and labor minister Yolanda Díaz tweeted. 

It will also increase pensions and targeted basic income in line with inflation, which the government expects to be around 8.5%. 

These measures will only become official if the budget is greenlighted by Spain's Congress. Because the government does not have a majority in the chamber, it will need the backing of other parties, such as Esquerra, which has proven key to getting legislation passed in the past. 

The left-wing pro-independence party, however, has already criticized the bill for not including a rent cap provision similar to that which was struck down in Catalonia as both Esquerra and Unidas Podemos had lobbied for.