Madrid, December 22 – The Madrid City Council has approved its 2026 budget, totaling 6.578 billion euros, despite unanimous opposition votes. The budget was passed with the municipal government’s sole support, reflecting a stance of “prudence” in the face of “state uncertainty,” according to Finance Delegate Engracia Hidalgo.
Key Budget Allocations and Fiscal Measures
The newly approved budget incorporates 52 amendments from all municipal groups. All government areas, delegated areas, and the 21 districts will see an increase in their budget allocations for 2026 compared to the current year. A significant highlight is the social spending, which will reach 1.273 billion euros, an increase of 143 million euros from 2025. This allocation will allow the City Council to dedicate 361 euros per inhabitant to social policies, marking a 43% increase since 2019.
Furthermore, the budget includes a new reduction in the municipal property tax (IBI), which is the sixth such reduction since 2019. These cumulative reductions have resulted in a total saving of 1.280 billion euros for Madrid taxpayers. Additionally, modifications will be made to the bonuses in the Vehicle Mechanical Traction Tax (IVTM), and the number of registered residents will be incorporated into the tariff calculation for residential properties.
Government Justification and Opposition’s Strong Criticism
Engracia Hidalgo, the Finance Delegate, emphasized that the budget was developed within a framework of “prudence” due to “state uncertainty.” She described the accounts as a reflection of “institutional stability, political responsibility, management transparency, and respect for the commitments made to the people of Madrid.” Hidalgo concluded, “We understand that these are the budgets Madrid needs.”
However, the opposition has harshly criticized the municipal government, asserting that its political project is “exhausted.” Emma López, a socialist representative, explained her group’s rejection by highlighting the “four letters” that define the 2026 accounts: “nada” (nothing), implying a lack of ideas and enthusiasm that, they argue, will not improve citizens’ lives.
Sara Ladra from Más Madrid warned that the budget caters to the “economic interests” of the municipal government, linking it to real estate speculation and luxury tourism. She insisted that these accounts are designed “for the rich.”
Finally, Arantxa Cabello from VOX argued that the municipal government’s economic policies are dictated by Brussels, aiming for “more intervention, more fiscal pressure, and more dependence on public spending,” which she believes harms the middle class.
The unilateral approval of the budget underscores a significant political divide within the Madrid City Council, with the government emphasizing stability and social investment, while the opposition decries a lack of vision and an alleged bias towards economic elites.
Source: https://www.ondacero.es/emisoras/comunidad-madrid/madrid/noticias/gobierno-municipal-aprueba-solitario-presupuestos-2026-madrid_20251222694944df22f0db7daffafb2c.html
