Xunta de Galicia approves 15,158 million euro budget for 2027

The Xunta de Galicia has approved its 2027 budget project, totaling 15,158 million euros, representing a 6.4% increase over the current year. The regional government plans to allocate three-quarters of this budget to social spending and double investment in housing construction. Key fiscal measures include new tax breaks for middle and low incomes, property purchases, and the transmission of family businesses. Notably, the 99% tax bonus for inheriting family businesses will be extended to employees of long duration to facilitate generational succession.

In Vigo, the regional government has committed nearly 400 million euros in total spending to support education and scientific development. Major projects include 14 million euros for the Domingo Villar Institute and 1.5 million euros for the rehabilitation of the Vicente Risco school. Additionally, the Xunta is introducing environmental fiscal measures, such as exempting companies from water usage fees when using treated urban wastewater instead of river water.

To fund these initiatives without new debt, the Xunta is relying on increased tax revenue, which is projected to grow between 7% and 9% due to a strong economy and high employment. While the government is currently absorbing rising public service costs to avoid passing them to citizens, officials have warned that this containment may not be sustainable indefinitely.