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Catalan Parliament Approves Salvador Illa's First Budget Amid Political Tensions

Catalan Parliament Approves Salvador Illa's First Budget Amid Political Tensions RUSSPAIN.com © russpain.com
Catalan Parliament Approves Salvador Illa's First Budget Amid Political Tensions © russpain.com
The Catalan Parliament has passed Salvador Illa's first budget after two years of negotiations. The €49 billion plan faces criticism from opposition parties and leaves unresolved issues in funding and education.

Salvador Illa's government has secured approval for its first budget, ending nearly two years of political deadlock in the region. The plan, worth about €49 billion and described as the Generalitat's largest, is Catalonia's first new budget after three years of interim or prorogued accounts. The PSC, ERC and Comuns backed it, securing 69 votes in favor against 66 from the opposition. The vote gives Illa's administration a impressive key stage after it struggled to secure parliamentary support since taking office.

The budget expands the Generalitat's resources by approximately €9 billion, or 22%, compared with the previous budgetary structure. Reported allocations include €2.4 billion for healthcare and €1.6 billion for education. Nearly €1 billion is allocated to dependency services. The package also provides about €4 billion in additional public investment. With Next Generation EU funding ending, pressure is growing to sustain infrastructure and other investment through regional resources and partnerships.

The approval follows months of tense negotiations and is seen as a impressive step toward stability in the current legislature. Yet the process exposed deep divisions among Catalonia's political forces. Junts, PP, Vox, CUP and Aliança Catalana all voted against the budget. Junts presented more than 1,300 amendments and criticized the government's lack of ambition and leadership. A voting error by Junts deputy Noemí Nieto briefly added confusion to the session.

Basic points of contention remain unresolved. ERC backed the budget while maintaining its demand for Catalonia to collect 100% of personal income tax, a basic dispute in negotiations over the region's future financing model. The new financing arrangement has been described as potentially bringing about €4 billion more. ERC also highlighted projects such as the rural development plan, the orbital line and building rehabilitation initiatives. Disputes in the education sector remain unsettled. Comuns focused on housing measures, including increased rental assistance and new protections for affordable housing, and demanded swift implementation of legislation to curb speculative property sales.

Opposition parties voiced strong criticism. Junts accused the government of political stagnation and of failing to accept opposition amendments, calling the process unprecedented. The PP described the timing of the budget as surreal, while Vox denounced what it called an unfair and confiscatory tax policy. Junts also warned Illa that disputes at the national level could have consequences for the PSC in Catalonia. Despite the objections, the government will begin allocating budget funds on the 14th of the month, aiming to roll out the new spending across departments.

The budget's passage aligns Catalonia with other autonomous communities, including Navarra, Asturias and the Basque Country, which have also recently approved their spending plans. Timing matters: the next fiscal year is expected to be dominated by municipal and general elections, making this likely to be the only budget of Illa's term. Approval gives the minority government greater spending capacity, but leaves the financing dispute and disagreements over housing and education unresolved. Illa will still rely on cooperation from ERC and Comuns.

Catalonia's budget process is closely watched across Spain because of the region's size and influence on national politics. The Generalitat's spending decisions affect public services and infrastructure, as well as social programs for more than seven million residents. Expanded allocations for healthcare, education and dependency care, alongside the investment program, set out the administration's spending priorities. Debates over fiscal arrangements and regional autonomy remain basic to Spanish politics and future negotiations between Catalonia and the central government.

Richard Reid RUSSPAIN.com
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Richard Reid

Richard Reid is the News Editor at RUSSPAIN.COM. He oversees editorial standards, source review and corrections and writes across general news, including politics, economics and social affairs.