It will also include the rise in pensions according to the CPI, around 0.9%, in a similar percentage of salary increase for civil servants, an aid for single-parent families and the increase in paternity leave from 12 to 16 weeks.
It is expected that on Tuesday morning the President of the Government, Pedro Sánchez, and the Second Vice President and Minister of Social Rights and the 2030 Agenda, Pablo Iglesias, will present in a joint act the draft with the basic lines on which the new ones are based. public accounts, and that the project is subsequently approved by the ordinary Council of Ministers.
Government sources have explained to Europa Press that the intention is that the budget project can see the light on Tuesday in the Council of Ministers with the aim that it can start its parliamentary procedure in Congress as soon as possible, which would mean continuing with the ‘roadmap’ established by the Minister of Finance, María Jesús Montero, in order for the Budgets to come to light “at the beginning of 2021”.
This same Monday the Government will meet with the unions in the public area to inform them of the 2021 salary increase and the public job offer for next year, to later do the same in the following days with the unions and with the different groups to obtain support , in a context of a new state of alarm announced by the Prime Minister this Sunday, which will be brought to Congress this week.
The negotiating team of the coalition government, led by the PSOE by María Jesús Montero, and by Unidos Podemos by the Secretary of State for Social Rights and economic leader of the ‘purple’ formation, Nacho Álvarez, have agreed and finalized until last Friday the fiscal measures.
The Government foresees an impact of the set of fiscal measures and of the new Law to fight against fraud of 6,847 million in 2021 and 2,323 million in 2022, thanks to new ‘green’ taxes, on plastic packaging, a VAT of 21 % to sugary drinks, the ‘Google’ and ‘Tobin’ rates and changes in direct and indirect taxation, which will allow to increase revenues by 33,447 million next year, to a record of almost 494,490 million euros.
The revenue-to-GDP ratio will stand at 40.3% in 2021, compared to 41.7% in 2020, while the public expenditure ratio will drop from 53% to 48%, although in absolute terms it amounts to 2,419 million more .
The Budgets are prepared with a forecast of a fall in GDP of 11.2% this year and a rebound of 7.2% in 2021 (9.8% counting European funds), and with a ‘spending ceiling’ of 196,097 million , 53.7% higher, which includes extraordinary transfers to the Autonomous Communities (13,486 million) and Social Security (18,396 million) and part of European funds (27,436 million).
THE ‘ESCOLLOS’: TAXES AND LIMIT ON THE RENTAL PRICE
The government coalition has hurried the negotiation deadlines and Sánchez and Iglesias finalize the details this weekend on the latest ‘fringes’ and discrepancies to be dispelled, one of the main ones referring to taxation and the regulation of the rental price demanded for Podemos, who wants to include it already in the Budgets.
However, the socialist side of the Executive advocates waiting: Montero postponed said regulation to the new Housing Law being finalized by the Ministry of Transport, although he pointed out that the PGE would include budgetary items to be able to execute said law.
IRPF, EQUITY AND CORPORATIONS
The Minister of Transport, José Luis Ábalos, also specified that the increase in personal income tax on high incomes and the limitation on the price of rents, contemplated in the coalition agreement, will be carried out “when the country can accommodate it. ”.
And it is that the rise in personal income tax is another of the main points of discrepancy in the negotiation, since United We can have demanded an increase in this tax from 200,000 euros for capital income, in front of the reluctance of the PSOE that opts for not including it or affecting income of more than 300,000 euros.
The proposal of the programmatic agreement was to raise the tax rates on the general base by two points for taxpayers who have incomes above 130,000 euros and four points for the part that exceeds 300,000 euros, while the state rate would increase 4 points for higher incomes to 140,000 euros.
The rise in Assets is in the air, for which an increase of 1% in the rate of fortunes of more than 10 million euros was expected, although it would continue to be subsidized by the autonomous communities.
Regarding Corporation Tax, a one-off increase to large companies is not ruled out, although the PSOE opts to postpone it for the “deep” tax reform that it plans to undertake when economic growth recovers and for which it will appoint a committee of experts .
The programmatic agreement proposal was a minimum taxation of 15% for large corporations, which would be increased to 18% for financial entities and hydrocarbon companies. Instead, the idea of lowering this tax to SMEs from 25% to 23% seems to be finally discarded for now.
TAX BONUSES AND EMPLOYEE SALARY
What does seem certain is the elimination of tax incentives in personal income tax for private pension plans and business plans are favored. The Minister of Social Security, José Luis Escrivá, advocates the British model of company savings plans, with additional contributions from the company and the State for each worker.
On the other hand, the elimination of the VAT exemptions for private educational and health services that the Government was considering seems to have been ruled out, which would have entailed the introduction of a 21% VAT for private education and health. AIReF has already warned in a report that public spending would increase if this measure were undertaken.
Regarding the salary of civil servants, its freezing has been ruled out and the increase is being clarified, which could be around 0.9%, since, although finally all the parties voted against raising the salary of the deputies by that percentage That was the initially planned level supported by the PSOE and United We Can.
IPREM, PENSIONS, HELP FOR SINGLE PARENTAL FAMILIES AND PATERNITY LEAVE
On the social level, on the Public Indicator of Multiple Effects Income (IPREM), which is used to calculate a good part of social benefits, Montero has already confirmed that the Budgets will include an increase in it, after three years frozen, although it is about to determine the percentage. In the last failed accounts a 1% increase was collected, and it is negotiated between a 3% increase (PSOE) or 5% (Podemos).
Radhika Apte reveals real reason why she got married
Radhika Apte needs no introduction to Kollywood fans after her appearance as Superstar Rajinikanth’s wife in ‘Kabali’ directed by Pa Ranjith. The intense actress impressed with her performance of a meek girl to a mother of a grown-up and especially her reunion scene with Rajini took the audience on an emotional ride.
Radhika is happily married to her British boyfriend Benedict Taylor who is a singer and she shuttles between Mumbai and London to balance her personal and professional life.
Radhika Apte in her most recent interaction with Vikranth Massey on social media from London has admitted that she does not believe in the institution of marriage. When asked why she got married the talented performer replied that it is easier for married people to get a British visa and that’s why she and her man opted for it in 2012.
Radhika is currently chilling with Taylor in their London home during the lockdown and will soon start filming her next English film ‘Noor Inayat Khan’ in which she plays a spy based on a true story.
Jacqueline Fernandez shares picture of her being in ‘happy place’
Actor Jacqueline Fernandez is working on a secret project where she found herself in a ‘happy place’. Taking it to Instagram on Sunday, the 35-year-old actor shared a picture dressed up like a traffic police officer as she is seen laughing her heart out.
“How was everyone’s Sunday?? Fun project coming up soon! #myhappyplace,” wrote Fernandez along with a picture where she is also seen holding a coffee mug. The ‘Kick’ actor also shared a few Instagram stories of her getting ready for the upcoming project.
Recently, the actor extended gratitude to her fans after the number of Instagram followers hit the 46 million mark.
Keep scrolling to read more news
Why an ‘active’ approach to risk modelling is key to navigating markets today
Whether investors are aiming for a cautious approach or a riskier investment profile with the potential for higher returns, Architas’ Blended Fund range is designed to match a range of investor risk appetites. And like many asset managers, Architas predominantly uses two approaches to define asset allocation within the five risk bands used in the Blended Range – strategic and tactical.
Whilst risk model provider EValue’s quantitative approach to asset allocation takes into account the long-term performance of different asset classes and the likely future performance given current valuations, along with long-term measures of volatility and correlations with other asset classes. Yet as with most systems of its kinds, EValue focuses on the long term; it is unable to analyse short-term market movements and fluctuations. So whilst it would have seen that in Q1 2020 markets fell by a record percentage before rebounding, it will not be able to factor in the cost of the coronavirus and lockdown and its impact on markets. Similarly, it is not able to consider ongoing Brexit woes, geo-political trade wars or the outcome of the US election in 2020.
Click here for the full article and to access more about the flexibility of the Architas Blended Range by clicking on the box below.
Read Guide Here