The Government has raised the ‘spending ceiling’ to a record €199,171 million in 2025 and forecasts a deficit of 2.5%. It includes a transfer from the State to the Social Security to the amount of €22,800 million, which represents an increase of 7%. Minister Montero explained that this figure of €199,171 million is “quite similar” to that recorded in the previous year -only slightly higher–, given that from now on Spain will receive more loans than transfers from the ‘Next Generation EU’ funds.
Without taking into account the European funds, the ‘spending ceiling’ rises in 2025 to €195,353 million, 3.2% more than last year (€6,138 million more). “It is a relevant, but prudent increase, which anticipates our commitment to fiscal stability”, stressed the Minister of Finance.
Together with the ‘spending ceiling’, the Government has given the green light to the fiscal path until 2027, which aims to reduce the public deficit from 2.5% of GDP in 2025 to 2.1% in 2026 and 1.8% in 2027 and to cut public debt to below 100% by the end of the period.
Once the spending ceiling and the fiscal path are known, the agreement of the Council of Ministers must be ratified by the Cortes Generales, first by the Congress and then by the Senate, but the Government has already ensured that the absolute majority of the PP in the Upper House cannot veto the budget stability objectives -which is what is voted on-, as has happened in other years, and to this end it has eliminated this power of the Senate in the Parity Law that has recently come into force.
