budget calendar
Spain’s finance ministry is preparing for the upcoming administration while navigating a parliamentary timetable shaped by the appointment of a new prime minister and the electoral calendar. The 2024 State Budget remains a work in progress, with the government anticipating a delay in approval and some continuation of current spending under temporary arrangements.
The Treasury’s head, speaking on RTVE, confirmed that the government will still draft the 2024 budget package. He stressed that the administration aims to have the budget approved in a timely manner and enacted before the start of the new fiscal year. Yet he acknowledged that the calendar could push approval past year-end, resulting in a delayed implementation while provisional spending measures stay in effect.
According to him, his department has already laid the groundwork weeks in advance. The process includes defining the macroeconomic environment, coordinating with Brussels, and refining macro forecasts in collaboration with the government. He emphasized ongoing support for the project as soon as the new government is formed and the necessary investments are ready, but noted that work continues regardless of the electoral timeline.
The budget calendar typically features several key steps before approval of a budget project. First, a possible revision of the overall budget and macroeconomic outlook is considered, followed by the establishment of the spending ceiling, usually in late June or early July, based on deficit and debt targets for the coming year. A regional and local input phase is often completed by late July, allowing the Policy, Tax and Financial Commission and the National Local Government Commission to set budget targets for regional administrations.
In reality, these steps have not yet taken place due to the calendar created by the New Year celebrations and the national elections scheduled for July. The typical sequence includes negotiations with other political groups in the latter half of August, before presenting the budget proposal to the Council of Ministers by September 30. In recent years this date has frequently been adjusted or exceeded, reflecting political realities and timing pressures.
Regardless of whether the next year’s Budget is approved on time, the government must submit the plan to the European Commission by October 15. The Budget Plan outlines the core guidelines for the accounts of all public administrations, including the State, autonomous communities, and local entities, for the coming year. The European Commission reviews these directives to ensure alignment with Brussels principles. New 2024 budget discipline rules and strategies to reduce the public deficit within the euro area are anticipated, with the Commission retaining authority to request adjustments within the month of November.
Under a normal timetable, the State Budget must be definitively approved by both chambers and published in the Official State Gazette before December 31, taking effect on January 1 of the following year. If approval is delayed, some accounts from the previous year may be extended automatically, though new Budgets can still be approved with retroactive effects after the new fiscal year has begun. This resilience in the system is designed to ensure continuity of public financing while political processes unfold. This overview reflects the ongoing effort to balance timely budgeting with the realities of political transition and interinstitutional coordination. (Source attribution: European Commission and national budget authorities.)