The Generalitat holds its course on the 2024 Budget law, which remains in the amendment phase after being discussed in the Cortes. The budget still shows a gap between income and expenditure that exceeds 500 million, a point that sparked strong reactions in Madrid yesterday. President Carlos Mazón stood firm, while PSPV and Compromís labeled the regional executive as irresponsible for presenting accounts that project this imbalance and could trigger future interruptions in services and programs.
The Ministry of Finance informed the Valencian Community that it will receive 15 billion 254 million euros through the financing system in the coming financial year. This figure marks a 13.4% increase from the prior year but falls 263 million short of what the Generalitat had forecast. The Treasury set a deficit target at 0.1%, versus the 0.3% that the Consell based its plans on, representing a deviation near 300 million. In total, 500 million remains unaccounted for in the balances Mazón declined to adjust yesterday.
The announcement signals a fresh directive from the central government. The head of the Consell criticized the central administration for its lack of transparency in delivering both the indicators and the accounts, which are in their final stages. Mazón argued that predictions had not been available, calling the situation unprecedented. He asserted that the budget was built on unofficial negotiations with Airef and warned that any cuts ordered by Sánchez would not be accepted if they were delayed, poorly executed, or carried out irresponsibly.
The opposition echoed the concern, accusing Mazón of irresponsibility. PSPV and Compromís expressed regret that the PP and Vox would approve portions of the proposed accounts in the Cortes next week that were deemed incompatible, poorly planned, and rigid. José Muñoz, the Socialist Treasury spokesperson, warned that such outcomes pointed toward imminent cuts. Aitana Mas, a Compromís deputy, urged the return of the budgets to the Consell for further refinement to avoid misalignment with fiscal realities.
A Socialist deputy noted that the deficit level of 0.1% had been known since October, since that figure was part of the stabilization plan the Government sent to Brussels. Before Monday, autonomies had already set the Valencia regional deficit at 0.3%, aligning with the broader adjustment framework discussed with national authorities.
PSPV and PP agreed on a debt forgiveness proposal
PSPV and PP reached a consensus on changes to the Generalitat’s budget. The agreement does not alter any monetary sums, but it opens the door to a concerted approach that emphasizes negotiation, calculation, and a methodology for determining the amount of fair forgiveness for historical debt. Vox, aligned with the People’s Party, rejected what they called an open bar approach where every district leader would pursue unilateral gains. After reviewing four sections of the budgets, the consensus on this particular change stood as a notable exception, illustrating the delicate balance between political forces and fiscal policy.
In this contexto, the parties highlighted that any forgiveness should be carefully measured to avoid destabilizing public finances while ensuring support for essential services. The negotiation framework aims to provide clarity for future budgeting and to set a transparent path for managing long-standing debt. The dialogue reflects ongoing tensions between regional aspirations and national constraints, as lawmakers seek to align fiscal prudence with social needs and economic recovery.
Observers note that the discussions underscore a broader challenge: maintaining credible finances while accommodating political demands. As the budget process moves forward, the focus will be on how to implement reforms without sacrificing the region’s capacity to fund vital programs. Stakeholders will watch closely how the Ministry of Finance translates these debates into a workable plan that satisfies the requirements of both regional and national authorities. (Source: Valencian Community)