State spending in Spain is expected to rise by 4.5 per cent over the next 12 months and the government is aiming for zero deficit for the first time ever, it was announced earlier this month. But rising inflation, currently standing at around 4 per cent, could prejudice the plans. Mr Cristobal Montoro, the Treasury Minister, said the government aimed to reduce the national debt to 62 per cent of GDP this year and said state spending will increase by 4.5 per cent, over half of which would be for social benefits and job creation.
The Minister said that the increases will be in "key areas" by 7.8 per cent, and the biggest increase will be 11.6 per cent in social benefits, with a particular focus on the family and children, the handicapped, the elderly and immigrants. He said the government had heeded calls for spending in certain sectors. The Spanish judiciary has received severe criticism over recent years for its antiquated snail-like procedure, and the minister announced a 9.5 per cent increase for modernisation of the system. Scientific research has also been deeply underfunded and Mr Montoro said that spending on research, development and innovation will rise 11.3 per cent to 550 billion pesetas (€2.7 billion); health will have an increase of 6 per cent; 8.7 per cent more money will be spent on the infrastructure and the environment.
Mr Montoro said that it was hoped that unemployment would continue to fall and a total of 380,000 new jobs would be created.