The countdown is on for Generalitat’s 2023 budget cycle. The Alcoy-based Seminari de Govern last weekend laid out the broad strategy for setting the regional accounts for the coming year. Now the work shifts to the eleven areas where Valencia’s Executive leadership is structured, each required to submit its spending proposals. The exercise is coordinated by the Ministry of Finance and Economy under the leadership of David Spain, who is setting the overall timeline and urging the remaining departments to file their figures by next Monday, September 19.
The ten ministries that comprise the Valencian Government, led by the Presidency, must allocate the funds they intend for each program. In August, the Treasury Ministry published an instruction in the Official Gazette detailing how the Generalitat should prepare the 2023 fiscal year budget and outlining the general framework to be followed.
Next Friday marks the weekly plenary session of the Consell, where the Botànic trio is expected to refine the organizational plan for the second consecutive year. That plan will steer the discussion on budget distribution. The approach follows an agreed formula that gains support from Podemos, with some hesitancy voiced by PSPV-PSOE members. Still, the political commission tasked with negotiating the overall budget was formed. In the last edition, the negotiating group consisted of seven members, two from each party, plus Eva Martínez, the general manager responsible for budgets.
Consell closes summer seminar with focus on iterating government in 2023
At a recent Valencian Government gathering in l’Alcoià, priorities for the coming budget were defined, centering on dampening inflation, safeguarding jobs, and advancing the ecological transition.
The annual accounts negotiation has long been a stage for high-stakes disagreements among Botànic members. The previous budget approached 28 billion euros, marking a record high and signaling a 9% rise over the prior year. Those accounts were framed as a vehicle to reinforce economic, social, and emotional recovery after the coronavirus upheaval that disrupted the system. Looking back, there were no hints of the shocks to come, including the Russia-Ukraine conflict and the surge in inflation that followed. This backdrop has prompted Generalitat’s leadership to push for a broader tax reform discussion, though the specific details remain to be decided.
Many expect Generalitat to incorporate similar revenue-raising items to close the financing gap, drawing on state contributions. In 2022, the budget already included a notable package: underfunded items totaling 1,336 million euros and an additional 1,000 million as a transition fund toward a new normal. Critics argued that some items were created to boost the Community’s fiscal position, which carries one of the highest debt levels relative to GDP.
Civic leadership and fiscal teams are poised to balance demand with available resources, aiming to protect essential services while supporting strategic investments that promote growth and resilience. The process remains dynamic, reflecting evolving economic conditions, political negotiations, and the ongoing need to align regional spending with broader national policies and fiscal constraints. Marked steps in the calendar will continue to shape how the 2023 accounts take form, with a focus on transparency, accountability, and measurable outcomes for residents across Valencia.
Notes and formal references are available through official channels as the budget cycle advances. As the negotiation unfolds, stakeholders stress the importance of a stable framework that can withstand inflationary pressures and external shocks, ensuring that public resources deliver tangible benefits to households, workers, and local communities. This ongoing dialogue emphasizes practical budgeting aligned with concrete policy goals and clear performance indicators. [Citation: Valencian Government budget process overview]