The current legislature concludes after the dissolution of the Cortes and the call for general elections on the next November 29, without new General State Budgets (PGE) being approved, something unprecedented since the beginning of the democratic era.
Throughout this period, the President of the Government, Pedro Sánchez, has managed with the accounts of 2023, which have been successively extended while waiting for the approval of new Budgets that ultimately did not materialize.
The PGE of 2023 were automatically extended for the third time on January 1. In the last Council of Ministers of 2025, the Executive greenlighted an agreement that set the criteria for applying the extension of these same accounts in 2026, after neither in 2024 nor in 2025 was a new budget project successfully passed.
The extension of this exercise represents the eleventh in the history of democracy, following the trail of the extensions already recorded with the Budgets of 1978, 1982, 1995, 2011, 2016, 2017, on two occasions those of 2018 and, now, for the third time, those of 2023.
With a very fragmented Parliament and, in particular, after the definitive break with Junts, the Government assured that it would try to gather the necessary support to bring forth new public accounts and, even when the ordinary deadlines had already expired, it maintained its intention to present a Budget for 2027.
In July, the Plenary of Congress rejected for the second time the deficit path and the budgetary stability objectives that the Executive had designed for the accounts of 2027, so the Government continued working on a project with a more demanding fiscal planning for the autonomous communities.
The Executive's proposal placed the deficit of the set of public administrations at 1.8% of GDP for the next exercise, at 1.6% in 2028 and at 1.5% in 2029. Within these figures, the bulk of the imbalance would be assumed by the Central Administration, with rates of 1.5%, 1.4% and 1.3% for the period 2027-2029.
In parallel, the Council of Fiscal and Financial Policy approved, despite the negative vote of the PP counselors, that the autonomous communities would have a deficit target of 0.1%.
After the announcement by the President of the Government, Pedro Sánchez, to call elections for November 29, the legislature closes without new Budgets and without the project of accounts for 2027 that the Executive was working on being registered in the Cortes.