Bankinter| The Council of Ministers on Tuesday approved the non-financial state spending ceiling for 2024 at €199.12 billion (0.5% higher than in 2023). The spending ceiling includes an advance of €9,905 million from the NGEU funds. Excluding European funds, this would amount to €189.215 billion (up 9.3% year-on-year). In addition, the joint general government deficit of 3% in 2024, 2.7% in 2025 and 2.5% in 2026 was approved.
Assessment: The spending ceiling is the first step in the preparation of the General State Budget. It is usually issued before the summer, but this year the electoral process has meant an impasse in the process. The Minister of Finance, María Jesús Montero, commented that she hopes to have the GSB in the first quarter of 2024. This year will be marked by the return to the application of EMU fiscal rules, after four years of suspension, first due to Covid and then the price crisis following the start of the war in Ukraine.
