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Spanish Government Approves €147.4 Billion Funding Boost for Regions and Municipalities

The decree-law raises transfers by 9.5 percent from 2024 to pressure the PP into backing government measures.

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La vicepresidenta primera del Gobierno y ministra de Hacienda, María Jesús Montero.
Pilar Alegría, portavoz del Gobierno.
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Overview

  • The Council of Ministers authorised a decree-law allocating €147.412 billion in 2025 deliveries to autonomous communities and local councils.
  • The 9.5 percent increase over last year’s payments reflects stronger tax revenues and overall economic growth.
  • Catalonia is set to receive the highest share at €28.228 billion, followed by Andalusia (€27.299 billion) and Madrid (€20.446 billion), while municipalities will get a record €28.734 billion.
  • When combined with the €11.692 billion 2023 settlement, total regional financing will reach €158.167 billion, up 2.5 percent on 2024.
  • Vice President María Jesús Montero presented the midyear update as leverage to secure PP support for the legislative agenda, prompting criticism from several regional leaders over the timing of the approval.