The Government foresees spending almost 5% more next year

BarcelonaThe Government has launched the work to prepare the Generalitat's budget for 2027. As anticipated by the Minister of Economy, Alícia Romero, in an interview with ARA, the Catalan administration has given the starting signal to have accounts for the next fiscal year. The Catalan executive has agreed to set the non-financial, non-earmarked spending ceiling for the Generalitat for 2027 at 43.191 billion euros, 4.9% more than in the 2026 approved budget. In absolute terms, this represents an increase of 2.021 billion compared to the figures for the current fiscal year.

This ceiling, far from the 2026 budget increase approved in July, which meant 9 billion more because they came from extending the 2023 budget, is the maximum discretionary spending limit that the Generalitat will have next year if the budgets are finally approved. The estimate does not take into account the new financing model approved by the Fiscal and Financial Policy Council (CPFF) last Friday, as it cannot be computed if it has not been endorsed by the Congress of Deputies. This reform, which is difficult to approve in Congress, and which must previously be approved by the Council of Ministers, would mean about 4.7 billion additional for the Generalitat.

Economic growth of 1.8%

The forecast for non-financial, non-earmarked revenue is 43.873 billion, 8.7% more (+3.528 billion) than in the 2026 accounts. This revenue scenario is built based on the amounts from advances and settlements of the financing model, forecasts regarding tax revenue, and other non-financial, non-earmarked resources. For the calculation, a real GDP growth forecast for Catalonia of 1.8% has been used, in accordance with the macroeconomic forecasts for the fiscal year, according to the Economy department.

Regarding the authorized deficit, a target of 0.1% of GDP (354 million euros) is expected, in line with the objectives approved by the Council of Ministers on July 6. The adjustments derived from the application of the European System of Accounts (ESA 2010), which allow the budgetary result to be expressed in terms of national accounting, will have a negative impact of 1.036 billion euros in 2027, as they include a specific fund to reduce deferred expenditure and thus contribute to the sustainability of public finances. Deferred expenditure—which is transferred from one fiscal year to the next—reached a new record of 5.295 billion last year, as reported by ARA.

The revenue forecast, together with the deficit margin and ESA adjustments, set the spending ceiling for 2027 at 43.191 billion euros, 4.9% more than in 2026. This effective increase is compatible with compliance with the 4% spending rule set for 2027, since part of the increase corresponds to the growth of earmarked resources assigned to departments and the financing of debt interest, two concepts that are excluded from the calculation of the spending rule, according to the Ministry of Economy.

The spending limit set today may be adjusted based on the evolution of tax revenues, increases in State transfers intended for the financing of transferred powers, changes in ESA adjustments, or any other relevant variation in revenues and the deficit target.

The Minister of Territorial Policy and Government spokesperson, Sílvia Paneque, stated at the press conference following the executive council that the planned accounts must allow for continued investment in areas such as housing, education, and public services. If they are approved, political stability would be bolstered until 2028, reports Gerard Fageda.