The government approved on Tuesday a non-financial spending limit of 226.032 million euros, 6.6% higher than the previous year, to draft the most expansive state budgets of the term.
The Cabinet also approved the budget stability path, which foresees cutting the public deficit to 1.8% of GDP in 2027, 1.6% in 2028 and 1.5% in 2029. Debt would fall to 97.6% of GDP in 2027.
Finance Minister Arcadi España said the figure guarantees the largest resources in history for Health, Education, Housing and Innovation. Spokesperson Minister Elma Saiz linked the decision to the strong performance of the Spanish economy.
The stability targets must be endorsed by Congress. The PP opposes them and Junts does not support them either, so they could be rejected in the 14 July vote. The government could present alternative figures on 23 July.
The new spending ceiling raises the limit 91.5% since Pedro Sánchez arrived at Moncloa in 2018. In 2027 there will be no NextGenerationEU funds and the state will finance all spending with its own resources.
