BARCELONA: Spain’s prime minister said Wednesday that his government has begun work on a 2027 budget, effectively shelving hopes of passing a spending plan for this year as his minority administration struggles to secure parliamentary support.
Socialist Prime Minister Pedro Sanchez’s government, which relies on a fragile network of parliamentary allies to pass legislation, still operates under accounts from 2023 since it has been unable to secure the approval of a new fiscal framework.
The Spanish Constitution allows for the previous year’s budgets to be automatically extended until there are new accounts under certain conditions if there is no parliamentary agreement.
Speaking at an economic forum in Barcelona, Sanchez said the government would launch the formal process for drafting and approving a budget for 2027, with a decree initiating the procedure to be published this week.
“The government is going to begin the steps to present and approve the new general state budget for the year 2027,” Sanchez said, adding that he hopes to send the proposal to parliament during the second half of the year.
