The Lower House ratified on Tuesday, July 22, the royal decree-law approved by the Government in June 2025, which will allow Spain’s Autonomous Communities to receive €147.4 billion this year in advance payments, 9.5% more than last year.
Congress approved the update to advance payments for both Autonomous Communities and Local Entities for 2025. This measure provides territorial administrations with the highest level of funding in history to ensure the delivery of quality public services for citizens.
First Deputy Prime Minister and Minister of Finance María Jesús Montero emphasised in her address to Congress that the primary goal of this royal decree-law is to provide regions and municipalities with greater resources to strengthen public policies. “The central idea behind this measure is to give more budgetary capacity to improve healthcare, education, social services, and long-term care,” Montero explained.
TDB keeps you informed. Follow us on: Facebook, Twitter and Instagram
Congress Approves Update to Advance Payments for Regional and Local Governments, Granting Record-High Funding
She also highlighted the progressive government’s ongoing commitment to regional financing, recalling that extraordinary resources were made available during the pandemic and that record funding has been provided year after year through the financing system — a trend that will continue in 2025.
In 2025, Autonomous Communities will receive the highest advance payments ever, totalling €147.4 billion, an increase of 9.5% compared to the previous year. Adding the settlement for 2023 —the difference between estimated and actual revenues— brings the total to €158.1 billion, 2.5% more than last year.
Despite the current budgetary extension scenario, the Government passed, and Congress ratified this royal decree-law. Montero stressed that, once again, the update of regional funding is decoupled from the approval of the General State Budget.
Government Commitment to Regional Financing
Montero reiterated that this record funding reflects the progressive government’s sustained support for the financial autonomy of regional governments, benefiting the country’s social majority. She recalled how, during the worst pandemic in a century, the Government maintained advance payments despite GDP contraction and assumed negative settlements resulting from revenue losses. Direct resources totalling nearly €30 billion were also provided to address COVID-19 impacts, marking the largest off-system transfer of funds in history.
In fact, under Pedro Sánchez’s government, Autonomous Communities have received €300 billion more in financing than in the seven years prior — a 47.4% increase.
Record Funding for Local Entities
The Minister of Finance also highlighted that the royal decree-law includes the update of advance payments for municipalities. Local Entities will receive €26.8 billion in 2025, a historic figure and 13.1% more than in 2024. Adding the 2023 settlement of €1.98 billion, total local funding will reach €28.7 billion this year.
During the seven years of the progressive government, municipalities have received 32% more resources than in the previous seven-year period, amounting to nearly €40 billion more.