Spain's minimum income scheme burns through 60% of its annual budget in four months

Spain's minimum income scheme burns through 60% of its annual budget in four months

Spending on the Ingreso Mínimo Vital (Spain's minimum income benefit) has soared by 22% through April, reaching €1.7 billion and consuming six out of every ten euros budgeted for the entire year. The figure, published by the Ministry of Social Security, leaves little margin for the remaining eight months and reopens the debate over the benefit's sustainability.

Spending is accelerating: €1.7 billion in four months

IMV spending in the first four months of the year came to €1.7 billion, 22% more than in the same period of 2023. This means the programme has exhausted 60% of its annual budget allocation with barely a third of the year gone. Projections suggest that, if the pace continues, the budget will run out before the end of the year, forcing either a top-up or a cut in benefits.

Behind the increase: regularisations and unconditional access

Two factors lie behind the rise in spending, according to analysts. On one hand, the mass regularisation of migrants in recent years: since 2020, the number of people regularised has quadrupled, exceeding 200,000 a year in 2022 and 2023. This group, having no prior income, easily qualifies for the IMV. On the other, the benefit's amount – around €740 a month for a single-person household – has been matched to the minimum wage, which discourages job seeking.

Comparison with other benefits: the imbalance

While the IMV grows with hardly any prior contribution requirements, other benefits such as the subsidy for over-52s barely reach €480 and require at least 15 years of contributions, having been made redundant and actively seeking work. The difference in conditions – and in amounts – has sparked an outcry among those calling for a more balanced system. Some propose limiting the IMV in time and requiring contribution periods, to avoid permanent dependence on the state.

With these numbers on the table, the question is whether the Government will have to increase the allocation or tighten the requirements. For now, the pot is emptying at a rate not even the state budget had anticipated.

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