Spain's Sánchez kicks off 2027 budget, earmarking historic housing spending

Prime Minister Pedro Sánchez announced that the Spanish government will publish this week the Treasury order to begin drafting the 2027 General State Budget. The order will appear in the Boletín Oficial del Estado and marks the decision to forego presenting a 2026 budget. Sánchez said the new budget will be "more ambitious, more social and more fiscally responsible", with housing receiving a "priority weight" and the "largest deployment of public resources ever in the history of Spanish democracy".

The programme also aims to keep the public deficit falling and to finish the legislature with debt below 100 % of GDP, while reforming autonomous financing by transferring about €21 billion to regional governments. Sánchez called for a "effort of generosity, responsibility and commitment" from parliamentary forces, especially Catalan and Basque parties, to secure support. The macro‑economic framework will be updated in June, with the draft to be presented to the Congress in the second half of the year and to be debated before the constitutional deadline of 30 September.

The finance ministry confirmed that housing, health and education will be key spending priorities, and that the budget will pursue social cohesion, innovation, digitalisation and the green transition amid an uncertain geopolitical context.