President Sánchez's new funding rules will give an extra €1 billion to Murcia in 2027

The revised system for budgeting and financing autonomous communities in Spain is designed to be fairer and will benefit the Region of Murcia more than any other

The Spanish Government has proposed a new system for funding Spain’s regions. Under this new plan, Murcia would receive €1.188 billion more in 2027, almost 20% more than under the current system. This is the largest percentage increase of any autonomous community in the country. Overall, the reform is expected to add nearly €21 billion across all the regions of Spain, bringing total funding to more than €224 billion.

The extra money for Murcia is intended to correct historic underfunding. The extra funds could be used to hire more staff, cut waiting times in hospitals, update medical equipment, upgrade public schools, add classrooms and digital tools for students, and expand services for the elderly and families who need extra support.

It could also pay for regional infrastructure, like repairing roads and maintaining green spaces. Maybe they can also finally convert those town-owned plots that are currently just muck and weeds into spaces the community can actually use.

Why will Murcia benefit more than any other region?

Murcia benefits more because the new system adjusts funding according to the population and local needs, including age, healthcare requirements, schools, unemployment and geographic factors.

The new system will also increase regional control over taxes such as income tax and VAT, giving communities more financial autonomy. The reform also aims to make funding fairer between regions. Areas with less money per resident will receive extra support, and the central government will contribute more to help reduce the gap between wealthier and poorer regions.

A climate fund of around €1 billion will be distributed to support regions facing environmental challenges, which is good news for the Mar Menor. The system also guarantees that no region receives less than under the current model.

Why Murcia’s president is concerned

Even though the new funding works out well for Murcia, the regional president, Fernando López Miras, is not happy with how it was negotiated. The plan was agreed between the central government and Esquerra Republicana (ERC), a Catalan independentist party, without consulting all 17 regions. Miras says decisions affecting healthcare, education, and social programmes should be agreed collectively, not through deals between the central government and individual parties. He is concerned that bypassing the Council for Fiscal and Financial Policy could weaken transparency and fairness for all regions in the long term.

The plan is now under review by regional governments, with discussions expected in the Council for Fiscal and Financial Policy in the coming months, and the government hoping for the new system to be approved and in place by 2027, if they can all agree.

Images: La Moncloa