The Spanish Government is preparing to submit its proposed 2027 General State Budget to the Congress of Deputies by the end of December, even if it lacks enough parliamentary support for approval, according to reporting by El Constitucional published on Saturday.

For residents, the proposal could set national funding for public transport discounts, commuter and medium-distance rail services, healthcare, education, housing and care services. The government has not yet published allocations, eligibility rules or dates for any of those measures.

Talks formally began this week between Finance Minister Arcadi España and Culture Minister Ernest Urtasun, who is also Sumar’s spokesperson. PSOE and Sumar must first reach an internal agreement before negotiating with other parliamentary groups.

Record spending limit proposed

The Ministry of Finance has said the plan will contain “the highest social spending in history”. Its starting point is a non-financial spending limit of €226.032 billion, 6.6% above the reference used for 2026 and the highest approved so far.

  • PSOE and Sumar want measures intended to improve access to housing and support young people, pensioners, families, self-employed people and businesses.
  • Sumar is seeking funding for a larger public rental-housing stock, controls intended to contain rents, and action against the use of temporary and tourist lets to bypass rental rules.
  • The party also wants a universal childcare payment for all families with children under 18, regardless of income, alongside more spending on care services, public transport and free school meals.
“It is time to turn economic growth into social progress.”Sumar, after the first budget meeting

Sumar has separately tabled a proposal in Congress for a 3% tax on assets above €50 million. The party estimates it would affect about 1,500 taxpayers and raise €4.2 billion for a dedicated child-protection fund.

Housing, tax and defence spending divide potential backers

Housing is expected to be the main point of disagreement between the two coalition parties, both over the scale of investment in public housing and the extent of controls on prices and large property owners. PSOE abstained from a Sumar initiative to stop investment funds buying homes one day before the budget meeting.

A proposed rent decree, initially announced for July and then deferred to September, has not yet been scheduled for approval by the Council of Ministers.

Podemos has said it will reject budgets that consolidate higher military spending. Junts, the Catalan pro-independence party led by Carles Puigdemont, has ended its agreement with PSOE and joined PP and Vox in rejecting the government’s fiscal targets.

“Do not count on us.”Josep Maria Cruset, Junts MP, during the fiscal-target debate

Congress rejected the government’s proposed fiscal path twice, with votes from PP, Vox and Junts. The Finance Ministry argues that, based on a State Attorney’s Office report, it can use the fiscal targets sent to Brussels as a reference while continuing the budget process.

The government intends to present the completed bill to Congress by the end of December, after exhausting negotiations with its parliamentary partners.

Reported by elconstitucional.es.