Spanish Prime Minister Pedro Sanchez

Spanish Prime Minister Pedro Sanchez.

25-10-2020BORJA PUIG DE LA BELLACASA / MON

Spain plans to raise taxes on large companies and wealthy people to fund increased spending on social care and infrastructure as part of its 2021 budget, the government said on Tuesday.

The left-wing government was spelling out some of its plans after it had already forecast earlier this month a worse-than-feared contraction of the coronavirus-battered economy this year and a strong rebound in 2021.

"This budget cannot be postponed. This budget is essential for the modernization and recovery of our economy," Prime Minister Pedro Sanchez said in a televised statement.

The tax moves include raising corporate taxes on large companies, income taxes on high earners and increasing a capital gains tax above 200,000 euros.

Sanchez said the government would double the infrastructure budget and would increase civil servants' wages and pensions by 0.9%, in line with projected inflation.

If the minority government gets enough votes to pass it in parliament, it will be Spain's first budget since 2018, and the first full-year budget since 2016. In other years, there was simply a roll-over of the previous budget, for lack of a majority.

Comments

The content of comment is the opinion of users and netizens and not of mallorcadailybulletin.com.

Comments contrary to laws, which are libellous, illegal or harmful to others are not permitted');

mallorcadailybulletin.com - reserves the right to remove any inappropriate comments.

Warning

Please remember that you are responsible for everything that you write and that data which are legally required can be made available to the relevant public authorities and courts; these data being name, email, IP of your computer as well as information accessible through the systems.

* Mandatory fields

Currently there are no comments.