Extremadura regional government fiscal policies

The regional government of Extremadura has implemented several fiscal measures and budgetary proposals aimed at economic and social development.

Initially, the government doubled its artificial intelligence subsidies for SMEs and self-employed workers, increasing the budget from 2 million to 4 million euros to meet high demand. This funding, distributed across the 2026 and 2027 fiscal years, covers up to 85% of investments in areas such as software development, training, and cybersecurity. The increase applies to existing applications that met requirements before the deadline, with payments structured in two stages: 60% upon granting and 40% after investment justification.

Subsequently, the government presented a 2027 draft budget exceeding 9 billion euros, a 4.8% increase over 2026 levels. Supported by the PP and Vox coalition, this proposal includes the ‘Bono Retorno’ to attract new residents, support for self-employed workers during disability, and rural employment programs. The budget also emphasizes housing through tax benefits for property owners and rehabilitation aid, while maintaining investments in healthcare, education, and energy production.

Expanding on its digital strategy, the government plans to invest €11.5 million annually into a specialized service to automate tasks and simplify administrative procedures via the Office of Value, Acceleration, and Digital Impact (OVAD). Additionally, under the ‘Smart Towns’ program, the Ministry of Economy, Employment, and Digital Transformation awarded grants to 68 municipalities and associations, primarily in Badajoz and Cáceres. These projects, focused on sectors like smart tourism, mobility, and energy efficiency, aim to improve public services and local management in towns with fewer than 20,000 inhabitants.