The Spanish government will propose a national budget for 2026 – the 2023 budget remains in effect – with skyrocketing spending and revenue. Despite the difficulty of passing it in the Congress of Deputies after... Together they have broken off their relationship with the PSOEThe First Vice President and Minister of Finance, María Jesús Montero, intends to try to approve them and, for the moment, has already taken a step forward with the approval of the spending ceiling and the stability mechanism. "They will be expansionary and responsible budgets," Montero anticipated at a press conference this Tuesday. Specifically, the Council of Ministers has approved a spending ceiling (the maximum amount that all the State's public administrations can spend in a year) that is once again a record: 212,026 million euros without European funds. With the arrival of the final funds from this windfall approved in the wake of COVID-19 –which must be spent by 2026–, the spending ceiling jumps to 216,177 million. This spending cap is 8.5% higher than the 2025 limit (€195.353 billion), which never materialized due to a lack of political agreement and the snap election in Catalonia. "This spending cap bears the DNA of a progressive government," Montero stated. Following this increase in the spending cap, the Treasury projects skyrocketing tax revenues. Specifically, Montero anticipated that she estimates revenues exceeding €325 billion for 2025. "And in 2026 they will increase by 8.5%," she asserted. Part of this revenue growth is explained by the inflationary context (most organizations estimatean average inflation rate above 2% by 2025 and slightly below 2026). This will be noticeable, for example, in the revenue from personal income tax, which makes up the bulk of the resources entering the public coffers. However, the Treasury also links this to the strong performance of the Spanish economy, while cooling down the possibility of raising taxes. "The increase in resources will not require any action that necessitates a law [...], many tax categories have the capacity to grow," Montero stated.

"The spending ceiling will anticipate the most expansive budgets in the country's history", stated the Minister of Employment, Yolanda Díaz, on Monday. The words of the second vice-president are not only a déjà-vu of the discourse that has prevailed since the pandemic began, but anticipate another record expenditure ceiling which the Council of Ministers plans to approve this Tuesday. This is a fundamental step in drawing up the general state budgets for 2021, which the two partners in the coalition government, PSOE and Unidas Podemos, will begin to negotiate this week. "They will be public accounts to solve the problems the social majority of the country has," insisted Diaz.