P ursuant to Articles 65 and 134 of the Spanish Constitution, Parliament annually approves the General State Budget Act, in Section 1 of which a total sum is established each year—proposed by the Government—for the Royal Household of H.M. the King. The purpose of this allocation is to ensure that the Office of the Head of State has a sufficient budget for the Head of State to carry out his duties with the independence inherent to his Constitutional role.
This overall amount—the total over the past five years is listed in the chart below—is normally revised each year in line with the revisions applied to other Constitutional bodies.
The total amount stipulated in Section 01 of the General State Budget for 2014 is € 7,775,040 euros, which involves a 2% cut with regard to the amount approved for 2013, in line with the reduction in allocations to the Constitutional bodies, approved by Parliament in the General State Budget.
In this regard, over the past ten years, and compared with the 40.58% increase in non-financial expenses of the State in the General State Budget, and with the 27.50% increase in the CPI during the same period, the budget of H.M. The King's Royal Household included in the General State Budget has risen by 3.49%.
With this annual sum, the Household of HM the King meets its financial obligations: the salaries, contributions and social expenditure of the senior management, management and other employees of the Household; operating expenses, such as office materials; certain supplies; expenses relating to protocol and representation -lunches, dinners and receptions; per diems and transport costs; the purchase of various types of materials for household services, etc.
In its fulfilment of these obligations, the Household complies fully with labour and fiscal law.
Royal Decree 434/1988, of 6 May, assigns financial authority as follows:
The Head of the Household prepares the budget proposal for the Royal Household, disburses the expenditure corresponding to its Services, signs contracts, and approves the annual accounts.
The Secretary-General of the Royal Household prepares the draft budget applicable to the Royal Household, in accordance with principles of rigour, economy and efficiency, and conveys this document to the Head of the Royal Household, together with the annual accounts and a report on the progress, cost and performance of the Services for which the Secretariat is responsible. Moreover, the Secretary-General controls all payments made.
The Administration, Infrastructure and Services Unit, reporting to the Secretary-General, draws up the annual accounts. By delegation from the Head of the Royal Household and from the Secretary-General, this Unit is responsible for the routine exercise of their respective powers in this area, managing financial resources in accordance with the criteria set out in the General Budget Act and in the General Plan for Public Accounting.
The Comptroller’s Office, headed by an Auditor who supervises all economic-financial, budgetary and accounting management functions, in accordance with the methods employed in the State Administration. This Office remits an annual summary report in this respect to the Head of the Royal Household.