Consell's Budget Extension Leads to Over 600 Million Euro Loss

The decision to extend the Generalitat's budget for 2026 has resulted in a significant reduction in spending limits, impacting investments and earmarked subsidies.

Generic image of a hand with a calculator, symbolizing budget management.
IA

Generic image of a hand with a calculator, symbolizing budget management.

The extension of the Valencian Generalitat's budget for the 2026 fiscal year has resulted in a loss of 626 million euros, directly impacting investment capacity and the continuity of earmarked subsidies.

The Consell has opted to extend the 2025 budget for the year 2026, a decision that, according to data from the Generalitat's Audit Office, has led to a reduction of 626 million euros in the available budget. This measure, while allowing for the basic functioning of the administration, limits spending capacity in key areas.
The difference is established between the 32,291 million euros initially approved for 2025 and the 31,665 million euros resulting from the extension for 2026. This figure, however, is partially offset by an automatic increase of 1,200 million euros in debt payments, leaving the real spending divergence at 1,859 million euros.

"The budgets are "in force", "we do not feel pressured", "they have not yet completed a year", "there are still important items to guarantee investment capacity"."

Juanfran Pérez Llorca · Head of the Consell
The legal limitations of the budget extension prevent the continuation of credits for programs that ended in 2025 and transform earmarked subsidies. This has caused numerous spending lines to fall, especially in investments and transfers. Investments have suffered a cut of 340 million euros, a 23% decrease compared to the 1,483 million initially planned.
Among the affected items are the 7 million euros allocated to Ford, 1.5 million for the reform of the Alicante Chamber of Commerce, 2.9 million for the l’Horta Nord Regional Social Services Consortium, and 2 million for unions and employers' associations. Housing rehabilitation aid from the State Housing Plan, valued at 9.5 million euros, has also been discontinued.
Despite these restrictions, the Consell can make credit modifications to adapt expenditures. A recent example is the activation of 860 million euros from an extraordinary credit granted by the Spanish Government for post-dana reconstruction efforts, which has provided financial leeway to the Valencian administration.