Catalan government extends 2023 budget again amid lack of new accounts

The Catalan government expects to approve on Tuesday an extension of the 2023 budget, which will come into force on January 1, 2026.

The Socialist-led executive will once again begin the year without new public finances in place, marking the third consecutive year under extended accounts.

The current public finances date back to the previous administration led by Pere Aragonès of the pro-independence party Esquerra Republicana.

As set out in the law, the budget extension guarantees the functioning of the public administration and the provision of public services until a new financial framework is approved.

All initial spending allocations for government departments and the wider public sector will be rolled over, except for those linked to programmes or initiatives that conclude this year.

President Salvador Illa hopes to launch negotiations early next year with left-wing Comuns and pro-independence Esquerra, his most likely parliamentary partners, to secure approval of a new spending plan.

However, passing a new financial framework will not be straightforward.

Still unresolved is the proposed new financing model for Catalonia, a key demand of the pro-independence parties, which must also be negotiated with Spain's Socialist-led central government.

"The government will give it their all to secure a budget for Catalonia in 2026," Illa said. "Things will happen in January."

Regarding Esquerra, which has refused to approve budgets tied to the implementation of the new financing model, Illa ruled out calling elections.

"We are very close to reaching the new financing model for Catalonia," he added.