The Directorate General of Budget (DGO) has already published a circular with instructions to the Central Administration services to prepare the budgets for the State Budget for 2025 (OE2025), which again include a 2.5% reserve.
The circular published on Friday contains the “instructions that public services and entities must follow for the purposes of preparing their respective budget projects.”
In these projects, entities such as ministries and state secretariats must, “respecting the principle of budgetary stability,” “ensure the balanced budget of your budget project and the overall positive or zero balance“, the circular states.
Furthermore, “when preparing the activity budgets of each entity, a reserve of 2.5% of total expenditure must be considered, with the exception of those financed with income from compensatory allowances and European funds.”
Entities of the National Health Service and Higher Education are also excluded from this reserve.
This circular also establishes that “in programs that present an increase in delinquency, an additional reserve of tax revenue must be established, for an amount of 50% of the value of the increase verified between June 30, 2023 and June 30, 2024, in accordance with section 3 of article 4.º-B of Law 8/2012, of February 21, in its current wording.”
The ministries are therefore subject to fundraising, and it should be remembered that the previous Minister of Finance, Fernando Medina, decided in the last State Budget to remove the “power of the Treasury to manage fundraising”, although he maintained this instrument.
Funding is a budget management tool that has allowed the Ministry of Finance to retain (and subject to prior authorization) a portion of the budget allocations of organizations and other ministries. In 2023, its value was 1.242 billion euros.
Those responsible must prepare the programs and communicate the ceiling distribution model to the DGO before July 31, 2024, and the OE2025 registration systems will be open from July 31 to August 14.
Source: Observadora
