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Tuesday, May 27, 2025

Andalusia's Budget Order for 2026 Emphasizes Housing and Social Services

Andalusia's Budget Order for 2026 Emphasizes Housing and Social Services

The Budget for 2026 will prioritize public services and sustainable investment while facing uncertainties at the national level.
The Official Bulletin of the Junta de Andalucía (BOJA) published an order on May 20, 2025, from the Ministry of Economy, Finance, and European Funds, outlining the regulations for the preparation of the autonomous community's budget for 2026. The order highlights that the primary focus will be on effectively financing and improving the public services network of the Andalusian social protection system.

The housing policy is also stipulated as one of the key priorities in the upcoming budget.

Carolina España, the minister in charge and spokesperson for the Andalusian Government, indicated in a recent forum that this order initiates the budget preparation that aims to address the main concerns of the Andalusian populace.

In a press conference following the weekly meeting of the Council of Government, she estimated that the total budget for 2026 could approach or even exceed €50 billion, coinciding with an electoral year for Andalusia due to the upcoming regional elections.

The published order states that its objective is to regulate the budget's scope, budgeting criteria, the unity and structure of the budgetary statements, and the processes for drafting and processing the preliminary budget project, while establishing necessary deadlines and requirements for compliance.

These regulations apply to all administrative divisions of the Junta de Andalucía, its institutions, special agencies, public business entities, and commercial companies within the Andalusian public sector.

The order also outlines that the budget for 2026 will be formulated in adherence to principles of budgetary stability, financial sustainability, and optimization in the use of public resources.

The primary focus will be on efficiently financing and enhancing the public services network within the social protection system, integrating innovative management strategies that promote citizen welfare and financial sustainability.

The budgetary measures supporting the productive sector will also prioritize administrative simplification and the reduction of bureaucratic burdens, aligning with investment priorities set by the European Union, particularly regarding the environmental and digital transitions.

In compliance with Law 8/2018 concerning measures against climate change, the budgetary programs will include indicators relating to climate change objectives, enabling an assessment of the environmental impacts of the expenditure and income policies.

The order underscores that the Andalusian economy maintained a steady growth rate throughout 2024, surpassing even the national economic growth rates towards the end of the year, with similarly positive expectations for 2025 and 2026. The job market is described as showing very favorable conditions, contributing to Andalucía's attractiveness for investments, characterized by a model based on dialogue, stability, reduced administrative hurdles, and low tax pressure.

Contrarily, the order notes that the robust economic context is not matched by the political-institutional scenario, as the Spanish government has not yet presented general budget projects for 2024 and 2025. Furthermore, the Cortes have not approved stability and debt objectives for the period 2025-2028. Despite this uncertainty in the national framework, the Junta de Andalucía asserts its obligation to prepare a budget project for 2026.

The lack of approved general state budgets is reported to hinder state investments in the autonomous community, preventing the creation of a leveling fund to compensate for lost resources.

This situation persists while the central government imposes spending measures that increase financial burdens on the Junta de Andalucía, estimated to exceed €1 billion.

The foundational public services—education, health, dependency care, and social services—remain at the core of the Andalusian budget.

The 2026 budget will reinforce commitments to enhance service quality and infrastructure while improving efficiency in public resource utilization.

Additionally, housing policy will be a priority in the 2026 budget to address the needs of the Andalusian population, particularly for youth facing significant barriers in pursuing their life projects.

The ministry indicates that 2026 marks the deadline for executing projects funded by the Recovery and Resilience Mechanism, making these initiatives key within the budget.

The rollout of the 2021-2027 multiannual financial framework of European Structural Funds will continue.

The government's commitment to environmental sustainability is also emphasized, with green investments deemed essential for fostering sustainable development, mitigating climate change, and conserving natural resources.

Investments allocated to renewable energies, energy efficiency, or sustainable transportation are highlighted for their potential to generate employment, stimulate innovation, and strengthen local economies, while ensuring long-term environmental and social benefits.
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