The Government extends the budget for the third consecutive year
Catalan executives have had to extend or approve accounts late in 12 of the last 16 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 the 2020 term. 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 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, there have been 12 out of 16 fiscal years in which there have been extensions or budgets approved after the deadline.
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 work with this formula. It is the path agreed upon with ERC, which did not want to grant the Socialists the political advantage of supporting the first budget of their new government. These three operations have 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—such as inheritance and gift taxes or property transfer tax and stamp duty—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 (Catalan government) and its public sector are extended, with the exception of those allocated to programs or actions that end in late 2025. Accrued healthcare spending, which includes all expenditures made by the Department of Health, CatSalut (the Catalan Health Service), and the 2, is 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.
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 budgets 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 late. 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. The final accounts were drawn up before the October 1st referendum and approved after the fiscal year had already begun. At this point, a period of instability began, with the accounts extended in 2018—the Generalitat was under state intervention from October 2017 to June 2018—, in 2019, and part of 2020. The 2021 accounts were extended again, and in 2020 they were approved within the established deadlines, something that has not happened with the 2024, 2025, or now 2026 accounts.
