Parliament passes 2012 budget
Spain’s governing Popular Party (PP) used their parliamentary majority to push through a €27 billion austerity budget yesterday.
The 2012 budget will see an overall reduction of expenditure by ministries of 16.9% with a pledge by
Treasury minister, Cristobal Montero, that Spain would meet its target of reducing the public deficit from 8.9% last year to 5.3% of economic output this year.
The Ministry of Foreign Affairs and Cooperation will be the hardest hit with a budget cut of 54.4%. Other cuts include the Ministry for Industry, Energy and Tourism at 31.9%; the Finance and Public Administration ministry at 22.9%, Education, Culture and Sport at 21.2% and Internal Development at 34.6%.
The budget also announced a slate of new taxes mainly aimed at business and especially large enterprises.