Spanish State Budget: Definition, Process, and Composition

Definition of the State Budget

The State Budget is the quantified, complete, and systematic expression of the obligations (expenses) that can be recognized, and the duties (income) that are projected for settlement during the relevant period (fiscal year).

Preparation and Approval Process

The budgets are prepared annually by the Ministry of Economy and Finance (specifically, the General Secretariat of Budgets and Expenditures, operating through three directorates):

• Directorate General of Budget
• Directorate General for Personnel Costs and Public Pensions
• General Directorate of Community Funds

The draft budget is approved by the Council of Ministers before being submitted to the legislative branch. The approval process involves several stages:

1. The Government presents the draft to the Congress of Deputies, which votes on general admission. If amendments to the whole prosper, the draft is returned to the Government.
2. Once general admission is passed, the ability to introduce piecemeal amendments is restricted to ensure no alteration of a balanced budget.
3. The draft is subsequently passed to the Senate for a second reading, though its ability to alter the budget is very limited.
4. There is a final submission back to Congress.

In the event that the budget is not approved, the budget from the previous year is automatically extended.

Composition of the State Budget

1. The State Budget (Central Administration)

This includes the budgets for the core institutions of the State:

• House of His Majesty the King
• Parliament (Congress and Senate)
• Ombudsman (Defensor del Pueblo)
• Court of Auditors (Tribunal de Cuentas)
• Constitutional Court
• The State Council (Consejo de Estado)
• Other central government departments

2. Budgets of Autonomous Bodies of Central Government

Examples include:

• Spanish Agency for International Cooperation
• State Vehicle Fleet
• Chief of Traffic (Dirección General de Tráfico)

3. The Social Security Budget

4. Budgets of State Agencies

These agencies operate with greater management autonomy:

• Instituto Cervantes
• Spanish Agency for Data Protection
• National Intelligence Center
• National Tax Administration Agency
• National Competition Commission
• Economic and Social Council
• Spanish Foreign Trade Institute
• Council for Nuclear Safety
• Museo del Prado

5. Budgets of Public Bodies with Credit Limitation

These bodies are subject to specific regulations limiting their budgetary credit.

6. Budgets of State Commercial Companies

7. Budgets of State Sector Foundations

8. Budgets of Public Business Entities and Other Public Bodies

9. Budgets of Funds Without Legal Personality