The Generalitat de Catalunya has approved a draft budget for 2026, projecting record expenditures exceeding €49 billion. The cabinet of socialist Salvador Illa made this move without guaranteed parliamentary support, which the opposition views as a demonstration of weakness. Key to the bill's future will be negotiations with the Republican Left of Catalonia (ERC), concerning matters such as personal income tax (IRPF) relief and the establishment of an infrastructure investment consortium.

Record Expenditures

The draft projects over €49 billion in spending, the highest figure in the region's history, including €8 billion for education.

Lack of Parliamentary Majority

Premier Salvador Illa submitted the bill to Parliament without first securing votes of support from the ERC.

Success of Unió de Pagesos

The farmers' union maintained its leadership in Catalan agricultural elections, securing nearly half of the votes.

Crisis in Extremadura

Internal friction within the PSOE in Extremadura is deepening following accusations of disloyalty towards the party's new leaders.

The Catalan government, led by Salvador Illa, has approved a draft regional budget for 2026, amounting to a record sum of €49,162 million. This is a distinctly expansionary budget, foreseeing increased spending in almost all sectors, with a clear emphasis on housing, education, and an increase in the number of civil servants. Spending on education alone is set to reach €8 billion, representing a 14% increase compared to 2023. The decision to submit the draft to the Parliament (Parlament de Catalunya) was made despite the fact that the minority government has not yet secured the votes necessary for its approval. The political situation surrounding the budget remains tense. The main negotiating partner, the ERC party, decided to postpone the first budget debate, giving itself an extra week to reach an agreement. The Republicans are demanding specific changes to the structure of the personal income tax and the finalization of talks on establishing a joint investment management consortium with the Spanish state. Meanwhile, the right-wing opposition, including the People's Party and Vox, has already announced amendments to reject the project in its entirety, accusing the government of continuing the policies of its predecessors and being dependent on the demands of the far left. The complicated political mosaic is complemented by events in other regions and sectors. In Extremadura, the local branch of the Socialist Party is grappling with internal divisions after the regional elections, while in Catalonia's agricultural sector, elections for the agricultural chambers have concluded. The Unió de Pagesos union once again triumphed, securing 47% of the votes, confirming its dominant position in the agrarian dialogue with the authorities. The stance of former Spanish Prime Minister José María Aznar remains significant, as he publicly warned against the rise of right-wing populism, which is interpreted as criticism of the Vox party's strategy regarding cooperation with the center-right. If Illa's government manages to reach an agreement with its coalition partners, Catalonia could ultimately have its budget passed by April 24th.The autonomous financing system in Spain allows regions like Catalonia considerable freedom in managing expenditures. However, since the crisis, the pursuit of full fiscal independence has been a constant point of contention with the central government in Madrid.„Son los mejores presupuestos de la historia de Cataluña, que responden a las necesidades de la ciudadanía.” (These are the best budgets in the history of Catalonia, which respond to the needs of the citizens.) — Salvador IllaGeneralitatIRPFERC49.16 mld € — is the historic budget of Catalonia for 2026

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