This amount will serve as the basis for the regional budget's development, prioritizing the essential needs of citizens, including healthcare, dependency care, education, and housing access.
The approval of the spending limit complies with the Organic Law on Budgetary Stability and Financial Sustainability (LOEPSF), which requires its establishment before August 1st. The Government will submit the budget to the Parliament by October 31st for processing.
This limit may be adjusted based on projected revenues from dedicated funding and potential changes in state fiscal rules.
The budget preparation is underway amidst a context of uncertainty, following the Congress's rejection of the budgetary stability objectives proposed by the Council of Ministers for 2027-2029. Currently, the reference framework is the Medium-Term Fiscal and Structural Plan (PFEMP) validated by European institutions, which sets a deficit target of 1.8% of GDP for all Public Administrations in 2027.
The Ministry of Economy forecasts a medium-term GDP growth reference rate for Spain of 4.0% in 2027. For the Canary Islands, a nominal GDP growth of 2.9% is estimated for 2027, with real growth of 2.0% in 2026 and a moderation to 1.0% in 2027.
The spending rule, still in effect due to the non-transposition of the European fiscal framework, limits the growth of computable expenditure to the medium-term GDP growth reference rate. The projected revenue increase of 8% exceeds this 4% limit, allowing for additional resource allocation.
Regarding revenues, an increase of over 8% in system funding is projected, totaling 8,881.83 million euros. Also considered are projections from the Canary Islands Financing Block (BFC), European funds from the 2021-2027 operational program, and affected state funding, including 215,000,000 euros for the road agreement and 45,050,000 euros for the 2026-2030 state housing plan.
