The Madrid City Council has unveiled its budget plan for 2026, which has already been called the most ambitious in recent years. Total spending will reach €6.578 billion, nearly 5% more than the previous year. Virtually all sectors of city life will receive additional funding, though not without heated debate.
The largest investments are planned for infrastructure projects. In particular, significant sums will go toward underground works along the A-5 route, upgrades on the Paseo de la Castellana, and refurbishing sections of the M-30 ring road. Altogether, €281 million will be allocated for these purposes. Despite the impressive figures, total investments still fall short of 2008 levels, when major tunneling projects on the M-30 were nearing completion.
Housing: A Sticking Point
The line item for housing construction has drawn particular criticism from the opposition. Although funding in this sector will increase by more than 5% compared to 2024, only €88 million will be allocated for new homes. Opposition party representatives argue this amount is clearly insufficient to solve Madrid’s acute affordable housing problem. With an overall budget of €6.5 billion, they say, this sum seems unconvincing against the backdrop of rising demand and long waiting lists for municipal housing.
City authorities insist that over 6,000 apartments are currently under construction, and around a thousand are expected to be delivered next year. However, opponents point out that in 2024 only just over two hundred apartments have been handed over, while around 60,000 people remain on the housing waiting list.
Social Support and Territorial Balance
A significant increase in funding is allocated for social programs, family support, and equality initiatives. The budget for this area will rise from 375 to 402 million euros. Authorities emphasize that particular attention will be given to families with children and to expanding home care services. A total of 335 million euros has been allocated for new contracts for these services.
At the same time, the opposition believes that the increase in social spending has only become possible thanks to the determination of sector workers, who demanded adherence to contract terms and improved service quality.
Another major expenditure item is the support for low-income districts. Nearly half of the 1.059 billion euros earmarked for local self-management will be allocated to the development of nine southern districts of the city—15% more than last year. Nonetheless, critics point out that most infrastructure projects are still implemented mainly in the northern areas, while many problems in the south remain unresolved.
Taxes and Fairness: New Disputes
Tax policy issues also sparked heated debates. Some council members believe the tax system remains unfair: the waste removal fee is still high for everyone, while the property tax (IBI) is being reduced mainly for wealthier residents. As a result, the disparity in tax burden between different districts of the city is becoming increasingly noticeable.
Overall, Madrid’s new budget reflects the authorities’ intention to invest in urban development and support social programs, yet key issues—such as affordable housing and fair allocation of resources—remain the subject of intense debate.
