Madrid, (UrduPoint / Pakistan Point News – 26th Nov, 2021 ) :Spain’s fragmented parliament passed the government‘s 2022 budget on Thursday, boosting the stability of Socialist Prime Minister Pedro Sanchez’s minority coalition government.
Lawmakers voted 188-158 in favour of the budget, which includes a record 240 billion Euros ($340 billion) in spending next year as the government seeks to spur activity in an economy badly hit by the coronavirus pandemic.
In a tweet sent just after the budget was approved, Sanchez said the spending plan will “spur the recovery and the modernisation of our country”.
The approval of the new budget secures the survival of government until the end of its mandate in late 2023 since if Sanchez’s administration lacks support for a budget next year, it can extend the 2022 spending plan for another year.
But the government struck deals with smaller, regional parties to secure their support for the budget, including one with Catalan separatist party ERC that sets a quota for regional languages on streaming platforms like Netflix.
Sanchez is betting the expansive budget will stoke an economic rebound that has lost some momentum due to weak domestic consumption and a slower than expected recovery in its key tourism sector, and prop up his approval ratings which have dipped.
Civil servants will get a 2.0 percent pay increase while old-age pensions will be increased in line with inflation.
But it is based on a prediction that Spain‘s gross domestic product (GDP) will expand by 7.0 percent next year, a forecast many analysts say is unrealistic.