Spain's defense ministry has left €1.051 billion unspent in 2024, as confirmed by the General State Accounting Office (IGAE), representing 93% execution of the assigned budget.

This figure reflects the difference between payments made and recognized obligations, whereas comparing the executed payments against the final allocated credits shows a higher unspent amount of €1.648 billion.

The government allotted €15.582 billion for defense in 2024, yet only €13.935 billion was expended.

This year's execution rate for the defense ministry is the lowest since 2015, though it still ranks among the higher-performing ministries relative to recognized obligations.

In contrast, ministries such as Digital Transformation and Public Function (25.5%), Industry and Tourism (37.2%), and Economy (57.8%) showed significantly lower execution rates.

Conversely, departments such as Inclusion and Social Security (99.3%), Housing (99.1%), and Interior (98.8%) led the execution rates.

Over the period from 2019 to 2024, the budgeted defense expenditure, including modifications, has experienced a growth of 60.1%.

However, the actual spending has only increased by 49.8%.

The budget allocation for defense is divided among current expenditures, capital expenditures, and financial costs.

Notably, real investment expenditures—the funds allocated for modernization—have surged, now constituting 43% of executed spending.

Despite this growth, the data indicates that actual contract and capital investments face more challenges in execution compared to current expenses, which accounted for 82.5% of the unspent funds in 2024. Factors contributing to under-utilization of investment funds may include delays in the development of several projects.

On Tuesday, the Spanish Council of Ministers is set to approve a new budget modification for defense worth €2 billion, opposed by the political group Sumar.

Carlos Martín, the General Coordinator of Sumar, argued that the issues at hand pertain not to volume, but to coordination.

Their objections will be officially recorded, continuing a trend observed in previous budget discussions involving minority coalition partners.

Although Spain has pledged to reach a defense spending ratio of 2% of GDP by 2029 consistent with NATO commitments, the current spending stands at 1.3%.

There have been historical modifications to the defense budget, allowing governments to increase allocations without congressional approval, often against the objections of minority coalition partners.

As it stands, the government has amplified its defense budget credits by approximately €873.539 million by February 2024, with the recent €2 billion modification expected to surpass the total budgetary adjustments made throughout the previous year.

Anticipated changes to spending ahead of the upcoming NATO leaders' summit in The Hague in late June are awaited, with assurances from Prime Minister Pedro Sánchez regarding the protection of social spending amid increases in defense financing.

The modifications to the defense budget have been a consistent practice, indicating a reliance on contingency funds, leading to a cumulative negative adjustment of €3.964 billion, which addresses both defense allocations and other unforeseen expenses.