Public sector salaries and the IRS increase to 801.85 euros: Measures included in the Generalitat's budget extension
Catalan executives have had to extend or approve accounts late in 15 of the last 17 fiscal years
BarcelonaFor the third consecutive year, the Catalan government will operate with an extended budget, beginning 2026 with the 2023 accounts. The executive council approved this Tuesday, in its last meeting of the year, the measure allowing it to extend the figures from three years ago, hoping to pass a budget for 2026. The Catalan government also ratified a decree that allows for a pay increase for public sector workers of up to 2.5% for 2024 and a maximum of 1.5% for 2026, which could be increased by an additional 0.5% if inflation is equal to or greater than 1.5%. The decree also includes a 3% increase in the Guaranteed Income Indicator (IRS) to €801.85 per month. The 2023 budget, which is the current budget, was also not approved when it should have been, that is, before the end of the previous fiscal year, but rather in March of the same year. The 2022 budget, with Jaume Giró still serving as Minister of Economy for Junts and Pere Aragonès (ERC) as President, is the last one that was agreed upon and approved on time. Since 2010, the budget has had to be extended or approved late in 15 fiscal years, and only twice (2010 and 2022) within the established timeframe.
In 2025, the government of Salvador Illa, which completed its first year after the May 12, 2024 elections—called early by the previous president, Pere Aragonès, because he failed to secure enough support to pass the budget—has had to operate using supplementary appropriations. This was the approach agreed upon with ERC, which refused to grant the Socialists the political advantage of supporting the first budget of their new government. These three operations added a total of €3,936.7 million to the extended budget. The last supplementary appropriation was €467.9 million, and the two previous ones were €2,168 million and €1,301 million, respectively.
Supplementary Appropriations
The supplementary funds are earmarked for specific, agreed-upon purposes. In all cases, the commitments arising from these supplementary funds are financed with the increased revenues estimated for the 2025 fiscal year, primarily from the financing system (2025 advance and 2023 settlement). Thanks to these measures, it has been possible to increase the expenditure projected in the 2023 budget this year.
Through October, revenues from advances under the regional financing model, at €23,545.4 million, have increased by 10.2%, while those from regional and ceded taxes on official acts and related acts—and documented taxes—at €5,058.4 million, have risen by 8%. Legally, the extension decree, which will come into effect on January 1st, guarantees the functioning of the administration and the provision of public services to citizens until the new budget is approved. Therefore, the initial appropriations for the expenditures of all departments of the Generalitat and its public sector are extended, with the exception of those allocated to programs or actions that end in late 2025. Accrued healthcare expenditure, which includes all spending by the Department of Health, CatSalut, and the Catalan Health Institute (ICS), will be extended by 3.5%, as established by the executive branch. In this way, the government preserves the status of healthcare as an "essential service." With extended budgets, investment is usually the main casualty.
Furthermore, the Government has decided to increase the number of public sector jobs by 542, bringing the total to 8,438 additional positions by 2025. Following the fire department, with 247 positions, the Catalan Tax Agency (ATC) will offer 77 positions "to ensure the necessary human resources for the implementation of the new, specific funding," according to the government. The plan also includes 74 positions for penal enforcement officers, 65 for rural agents, 57 to cover partial retirements of contract staff, and 22 for administrative, technical, and contract staff.
The fact is that from 2010 – when José Montilla was President of the Generalitat and Antoni Castells was Minister of Economy – until 2021, none of the Generalitat governments had managed to approve the budget on time and had to resort to extensions. In 2011, budgets began to be approved late, with significant cuts in 2011 and 2012 by Artur Mas's government. In 2013, the 2012 budget was extended due to Mas's early election call. The 2014 and 2015 budgets also had to be approved outside the established deadlines. When the Economy portfolio was transferred from Andreu Mas-Colell to Oriol Junqueras, who also held the position of Vice President, the 2016 budget was extended. And the final budget was drawn up before the referendum on the referendum.
At this point, a period of instability began with extended budgets in 2018 –the Generalitat was under state intervention from October 2017 to June 2018–, in 2019, and part of 2020. In 2021, the budget was extended again, and the 2025 budget was approved within the established deadline, something that has not happened with the 2024, 2025, or now 2026 budgets.