PP and Vox sign budget agreement for Andalucía until 2030 in Spain

A significant development has taken place in the political arena of the autonomous region of Andalucía in southern Spain, and the People's Party (PP) and Vox signed a comprehensive agreement ensuring Juanma Moreno's election as the regional president for the third time. This agreement protocol, consisting of exactly 150 articles, was shared with the public before the voting process held in Sevilla and followed with intense interest, not only guarantees Moreno's vote of confidence but also contains concrete economic commitments regarding the future of the region. The most striking and strategic aspect of the agreement is that the Vox party explicitly makes its commitment to support the budget drafts that the regional government will submit for the next four years a condition; this means that Andalucía will have an uninterrupted and approved fiscal planning until 2030. This long-term political stability and financial predictability will positively affect the investment environment of the region and provide a ground for the comfortable implementation of long-term projects by ensuring management Continuity. The moment of signing and the announcement of the details to the press show that both parties want to position this alliance as both a victory and a necessary coalition.

Regulations made in the field of fiscal policies and taxation constitute the most detailed part of the agreement that directly concerns the citizen, and particularly wide place is given to tax reductions. In this context, it is planned to make a 0.25% reduction every year in the regional slice rates for taxpayers with an income below 60,000 Euro in the annual Income Tax (IRPF) declaration, while the target is set to increase this total reduction rate to 1% by the end of the current legislative term. In addition, to support the family, a system that grows as the number of children increases will be introduced and financial contribution will be provided to families with children by applying a coefficient in the tax bracket; accordingly, it was decided to apply a fixed tax deduction or aid of 500 Euro for the first child, 1000 Euro for the second child, and 1500 Euro for the third or more children. If the child has a disability rate of 33% or higher, it is also among the plans to provide extra support to disadvantaged groups by doubling the amount of this aid. These steps serve two basic political goals: relieving voters economically and encouraging population growth.

The agreement attributes special importance not only to those with children but also to the 'large family' category with a wide family structure and aims to lighten the tax burden of these segments. Since the existing regional tax deductions will be increased by 50%, the amounts these families benefit from will be raised from 200 Euro to 300 Euro in the general category, and from 400 Euro to 600 Euro in the special category. As an important detail, the fact that no income limit is imposed to benefit from this support increases the inclusivity of the policies while ensuring that not only middle and low-income groups but also higher-income large families are supported. Education expenses were not ignored either, and tax deductions will be expanded for expenses spent on breakfast, cafeteria, school uniforms, textbooks, school supplies, and supportive training courses to facilitate preparations for the return to school.

Provisions providing financial relief, especially for individuals with chronic diseases, have also taken their place in the agreement in the field of health, and these groups are supported as a requirement of the social state principle. In this direction, a 15% Income Tax deduction will be granted to family members for expenditures such as prescription glasses, contact lenses, and their cleaning products, but this deduction is limited to 150 Euro to maintain financial balance. In addition, a much more comprehensive and strong support package was prepared for ALS (Amyotrophic Lateral Sclerosis) patients, and a fixed tax deduction of 2000 Euro was introduced in the IRPF for these patients. The fact that this deduction is not limited to the patient himself but is also valid for his spouse, parents, or children who care for him aims to lighten the financial and psychological burden on families afflicted with this severe disease and will be applied without any income limit.

Finally, the regulations made under the title of environment and agricultural policies are of a nature to fundamentally change the economic structure and operation of the tax system of the region and constitute the last part of the agreement. Three separate taxes currently applied for environmental purposes will be completely abolished; while the plastic bag tax affects daily life, the gas emission tax affects industry and the discharge tax in areas bordering the seas concerns environmental investments. In order to reduce the costs of businesses operating in sectors that are the backbone of the rural economy such as agriculture, livestock, hunting, and fishing, a gradual reduction of up to 50% in all fees and taxes within the regional jurisdiction is planned, thus giving life support to the rural areas. In addition, a tax bonus will be introduced for sales between siblings in the real estate tax (in transitions through inheritance or gift), and it is foreseen to expand this practice to include uncles, aunts, nephews, and other relatives within the framework of financial sustainability rules.