For each percentage point of revaluation of the remuneration of civil servants, the cost of personnel would rise by 1,400 million
MADRID, 17 Oct. (EUROPA PRESS) -
The Bank of Spain calculates that for each percentage point of revaluation of pensions with the Consumer Price Index (CPI), the aggregate expenditure of this budget item would increase by around 1,800 million euros, so that a rise in inflation of the 8.5% - raised by the Government in the PGE of 2023 -, would mean about 15,300 million.
This has been detailed by the governor of the Bank of Spain during his speech this Monday in the General State Budget Commission (PGE) of 2023 in the Congress of Deputies to explain the new accounts.
In total, the Government will allocate 190,687 million euros to pensions in 2023, which represents an increase of 11.4% compared to the 2022 item, due to the updating of pensions according to the CPI, which the Government estimates in a rise of around 8.5%.
The governor of the Bank of Spain has once again reiterated his recommendation that, in the current adverse scenario, automatic indexation clauses for public spending be avoided in order to accompany the private sector income pact.
As the governor has warned, the demographic trends that are expected in the coming years in Spain will generate very significant pressure on public spending associated with the pension system, which makes it essential "a specific analysis of the main aspects and reforms of said system ".
For this reason, it has pointed out that the fact of dealing with the increases in pension spending that will result from population aging will require new actions in the future on the side of income, expenses or both.
In this regard, the Bank of Spain has been pointing out in recent years the advisability of reinforcing the link between contributions made and benefits received, ensuring a sufficient level for the most vulnerable households.
In addition, Hernández de Cos believes that the redistributive consequences and in terms of intergenerational equity of the proposed future reforms should be analyzed. Likewise, he sees "desirable" that the system be provided with greater transparency and predictability, in order to offer certainty to citizens and facilitate decision-making in the areas of savings, work and retirement.
In this sense, the governor believes that it might be convenient to assess the introduction of automatic adjustment mechanisms that adapt some parameters of the system to the changes that occur in demographic and economic dynamics.
Regarding the impact on the accounts of the increase in salaries of civil servants, the Bank of Spain calculates that for each percentage point of revaluation of the remuneration of public employees, personnel spending would rise by approximately 1,400 million euros.
Looking ahead to next year, public remuneration will rise by 2.5% and may be increased by up to one additional point depending on variables linked to the CPI and nominal GDP.
Civil servants will receive 0.5% more if the sum of the harmonized CPI for 2022 and the advance harmonized CPI for September 2023 exceeds 6%. The other variable, also 0.5%, will be applied if the nominal GDP equals or exceeds that estimated in the macroeconomic table that accompanies the 2023 PGE.