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Ministry of Finance (Spain)

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Ministry of Finance (Spain)

The Ministry of Finance or Ministry of Treasury (MH) is the department of the Government of Spain responsible for the design and implementation of the government policy on public finance and budget. It applies and manages the regional and local financing systems and the provision of information on the economic-financial activity of the different Public Administrations.

The Finance Ministry also manages the cadastre and collects all the State taxes through the Spanish Tax Agency as well as controlling most of the state-owned enterprises through the State Company of Industrial Participations (SEPI). Likewise, the MH manages the central government goods, the European funds and the public lottery. However, most of its duties are carried out by autonomous agencies like the Tax Agency and the Royal Mint.

Established in 1714, it succeded the Secretariat of State and of the Office of War and Treasury in all financial affairs. At this time, it was named Veeduría General and it was headed by a Universal Inspector, who in turn was subordinate to an Inspector-General. It was formally established as a ministerial department in 1720, when it was renamed as Secretariat of State and of the Office of Finance.

Since June 2018, the current finance minister has been María Jesús Montero, who previously served as Regional Minister of Finance of Andalusia.

The Ministry of the Treasury, along with the Foreign Ministry and the Justice Ministry, is one of the oldest ministries of Spain that currently exists (the Ministry of Defence, too, but since the 18th century has been split into several ministries). The history of the Ministry of the Treasury dates back to 1705 when the first Bourbon King, Philip V, tried to fix the financial problems that the Habsburg dynasty had provoked. At the same time, this body was created to centralized the power of all the Monarchy. Before this, the traditional Royal Treasury was composed by several bodies, divided between the Crowns of Castile and Aragon.

The Crown of Castile's main treasury body was the Supreme Finance Council created in 1523 and deeply reformed in 1658. Along with this, there was an accountant body of royal servants that existed from the very beginning of the Kingdom of Castile and the General Superintendency of Finance created in 1687.

The Crown of Aragon had as its main finance institutions were the General Manager and the Rational Master of the Court. In both cases and during the 16th and 17th centuries there was one for each of the territories that make up the Aragonese Crown.

After the War of Succession, both Crowns finally merged into the Kingdom of Spain and the finance institutions were structured according to the Castilian organization. However, the traditional Castilian model also did not work in a desirable way, due to its own organizational structure and the serious situation in which the Crown's incomes were found. Many of the incomes had been leased to private individuals during the 17th century, shriveling the income of the Royal Treasury.

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