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Spain Sets 2026 Spending Cap as Cities and Provinces Push Through Budgets

Congress must now vote on the deficit and debt path that will anchor the 2026 state budget.

Overview

  • The Council of Ministers approved a non‑financial spending limit of €216.167 billion for 2026, an 8.5% increase on 2025 that includes EU recovery transfers due to end next year.
  • The fiscal path sent to Congress targets a 2.1% of GDP public deficit in 2026, expects local balance, and would face a second vote before year‑end if initially rejected.
  • Córdoba’s council approved a consolidated 2026 budget near €600 million with the PP’s absolute majority after defeating opposition attempts to overturn it.
  • Oviedo’s economy commission rejected total amendments from PSOE and Vox, sending an unchanged 2026 draft to an extraordinary plenary vote as IU continues talks with the PP.
  • Local budgets advanced elsewhere: Silla passed €21.39 million with taxes frozen; Alcantarilla initially approved €38.5 million citing prudence during a pending water contract; Xàtiva adopted €39.63 million with PSPV‑PSOE and Xàtiva Unida; Toledo’s provincial budget was presented at €199.47 million with about half for municipal investment.