The Independent Authority for Fiscal Responsibility (AIReF) completes the assessment of the Initial Budgets of the Public Administrations 2025 with the Supplementary Report on the local subsector, in which an individual and group analysis is made of the 25 large Local Governments (LGs) that, due to the size of their budgets, competencies, organizational structures and population affected, have a decisive influence on the outcome of the subsector.
For the subsector as a whole, AIReF estimates a growth of 3% in eligible expenditure for the purposes of the national expenditure rule, below the reference rate set at 3.2%. For the purposes of the European expenditure rule, net primary expenditure will grow by 3.8%, slightly above the PFEMP reference. The LGs will close 2025 with a surplus of 0.3% of GDP, three tenths of a percentage point better than the previous report’s forecast.
