This Wednesday, the Governing Council of the Community of Madrid approved the second budgets presented with an absolute majority in the Madrid Assembly. The Executive of Isabel Díaz Ayuso foresees that the accounts in 2025 will rise to 28,662 million, 4% more than the current budgets. For the president’s team, these figures represent a “historical record” of expenses in portfolios such as Health, Education, Housing, Social Policies and Transportation.
The spokesperson for the regional Executive, Miguel Ángel García Martín, has assured that the accounts planned for next year are “very efficient.” “We have sought budgetary rigor, but at the same time they are very demanding,” he added. His colleague on the Government Council, Rocío Albert, has assured that these budgets have the approval of the Independent Authority for Fiscal Responsibility (AIReF).
The budget announced this Thursday will increase by 1,104 million compared to last year. This project does not include a new deflation of personal income tax or a half-point reduction in all sections of personal income tax. However, a 100% bonus on regional management taxes on the purchase of a home is contemplated for those affected by Metro line 7B, in San Fernando de Henares. This bonus will be applied in those cases in which the purchase of a house has served to acquire a property to replace the damaged one.
In 2023 and 2024, the Community of Madrid deflated personal income tax to face the consequences of the War in Ukraine and the rise in prices. This measure, which in recent years has become the ‘star’ tax recipe of the right, involves increasing the brackets to which the different types of income tax are applied. However, although it is advertised as a formula to fight against the impact of inflation, it is another way to reduce income tax if salaries do not rise.
In the press conference after the presentation of the draft budget, Albert assured that “fortunately” the Spanish economy is not facing “a time of runaway inflation.” And he added: “Until the final moment where we see how accumulated inflation is, we will not make the final decision, but we have almost made the decision not to deflate.”
A half-point reduction in all income tax brackets has also not been included in the 2025 accounts, despite the fact that, according to Albert, in 2022 this measure helped them collect 900 million more. “We have contemplated the half-point reduction throughout the legislature, but it will not be included in the 2025 Budget,” added the Minister of Economy.
Discounts on public transport
These accounts also include the regional bonus to maintain discounts on public transport next year, only if the Government of Pedro Sánchez also maintains its part. This is how Albert explained it, remembering that the regional Executive assumes 30% of that discount and the central Executive assumes the other 30%. “We are waiting for the Minister of Transport to communicate before the end of the year whether he will continue to maintain it,” he explained.
At the educational level, the Ayuso Government includes an injection of 122 million to carry out one of its latest proposals: including the first ESO courses in schools. The objective of this measure, as Albert has defended, seeks to ensure that “children do not stop being children before their time.” 25 public schools will teach 1st and 2nd Secondary next year, thanks to the economic investments that the Ministry plans to make in the coming months.
Despite the announcement, the inclusion of first cycle ESO classes in schools is prohibited by educational law, specifically against the provisions of Royal Decree 132/2010, of February 12, which establishes the conditions that secondary schools must meet. , as published by elDiario.es.
Among the ideological struggles of the Ayuso Government, its Minister of Economy has defended the contribution of 1.7 million euros to the Toro de Lidia Foundation, an expense included in the 2025 budgets and that was not contemplated in the previous accounts. To justify this departure, Albert has pointed out that “everything related to the national holiday” and bullfighting “is culture” and “they are traditions.”
The president’s team maintains that the ministries that manage social spending will see their allocation increased, among them will be Health (+294 million), Education (+239.5) and Family, Youth and Social Affairs (+84.5). that have a greater increase in absolute terms.
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