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In the case of the Generalitat’s extension, a decree also enters into force that allows the pay increase for public workers of up to 2.5% with respect to 2024 and for 2026, a maximum of 1.5%, which could be increased by an additional 0.5% if inflation is equal to or higher than 1.5%. A 3% increase in the income sufficiency indicator (IRS) has also been enabled to 801.85 euros per month. Equally, it is guaranteed that accrued healthcare expenditure – which includes all expenditure incurred by the Department of Health, CatSalut and the ICS – will grow by the maximum percentage allowed by the expenditure rule, i.e. 3.5% to preserve the “essential service” character of healthcare. With extended budgets, the main casualty is usually investment.
In the Generalitat, from 2010 – when the president of the Generalitat was José Montilla – until 2021, none of the governments of the Generalitat had succeeded in approving the budgets when they were due and they had to resort to extensions with the governments of Jordi Pujol in 1982 and 1983 and approve them outside the deadline in the years 1981, 1984, 1986, 1987, 1990, 1996, 2000, all of them with Pujol in charge; in 2004, with Pasqual Maragall; in 2007, with José Montilla, in 2011, 2012, 2014 and 2015, with Artur Mas, in 2017 with Carles Puigdemont, and in 2020, with Quim Torra.
Democracy premiered with an extension in the case of the State in 1978 for the Transition and the establishment of the new legal framework after the approval of the Constitution. Then they took place in 1982, the exercise of change in the Spanish government from Leopoldo Calvo-Sotelo (UCD) to Felipe González (PSOE); in 1995 for lack of parliamentary majorities with Felipe González in the Spanish government; in 2011, with José Luis Rodríguez Zapatero (PSOE); in 2016 to have an acting government after the general elections, with Mariano Rajoy (PP) as president; in 2019 and 2020, with Pedro Sánchez (PSOE) and in 2024, 2025 and, now, 2026, also with Sánchez. In addition, the late accounts were approved on five occasions: 1983 and 1990, with Felipe González; 2012 and 2017, with Mariano Rajoy, and 2018, with Pedro Sánchez.
The state extension also preserves an addendum that simplifies the recovery plan “in order to streamline verification and enforcement processes with reduced bureaucratic burdens, strengthen strategic priorities and optimize the use of available resources before the end of the resolution and resilience mechanism (MRR) next year” (2026).
In addition, with the new year new tax obligations and grants come into force:
More control of Bizum and cards
Financial entities must report monthly to the Tax Agency of the accumulated invoicing made by Bizum by employers and professionals. They will also have to do it with card transactions of all kinds made by taxpayers who exceed 25,000 euros per year in transactions.
Diesel taxation
In order not to lose European Next Generation funds, the Spanish government will have to make diesel taxation more expensive, as provided for in the transition plan. As the executive was having difficulty getting enough parliamentary support, Brussels gave Spain an additional six months to comply with the commitment.
Aid for energy efficiency and electric vehicles
The Treasury has launched tax measures for those who carry out energy efficiency works in their homes. Income tax deductions are 20%, 40% and 60%. Also for those who buy an electric vehicle until December 31, 2026, with the extension of deductions of up to 15%. The grants are also for the installation of charging points.
Unemployed people do not have to submit their income tax return
Another of the new developments is that those people who receive unemployment benefit are no longer obliged to submit their personal income tax return.
