Montero punishes municipalities that manage responsibly by blocking the use of the municipal surplus. while the For the second consecutive year, Pedro Sánchez's government has failed to comply with the constitutional mandate to present a new budget. Generals of the State.
The decision of the Minister of Finance prevents municipalities from investing in essential projects for their residents, paralyzing investments that were already planned and budgeted with own funds.
This measure represents a new episode of the fundraising effort of a Government that continues to increase spending on advisors while limiting the autonomy of local entities.
The extension of the budgets not only affects the autonomous communities, but also Montero directly punishes the councils who closed the year in the black and are now unable to execute those items.
The surplus, hostage to the budget blockage
“Montero punishes those who have done well”, denounced the Andalusian Popular Party, after learning that the Ministry of Finance has vetoed the use of the municipal surplus until new budgets are approved.
The Budget Stability Act allows this surplus to be used for financially sustainable investments, but the current budget extension framework prevents this rule from being applied.
This blockade particularly affects dozens of Andalusian municipalities governed by the PP, where the healthy accounts allowed for projects to be undertaken to improve streets, public spaces, sports facilities, and local employment plans. Now, everything is on hold due to a political decision that Montero punishes without hesitation.
Sánchez violates the Constitution and Montero punishes Andalusia
Article 134.3 of the Constitution establishes that the Government must present the General State Budget before October 1 of the previous year. Sánchez has not done so in either 2023 or 2024. And while the socialist Executive keeps the accounts frozen, Montero punishes the city councils, who already had those funds to put them at the service of citizens.
From the Andalusian PP, General Secretary Antonio Repullo has been clear: "Montero is punishing municipalities to cover up Sánchez's irresponsibility. This government has surrendered to its pro-independence partners and is leaving mayors who do serve their residents in the lurch."
The government is insatiable when it comes to collecting taxes. Its next step: it punishes municipalities that manage well and freezes their investments. The excess money should go to the state coffers. More for its advisors, less for the residents.https://t.co/ITkNz99ci3
– Antonio Repullo Milla (@arepullomilla) March 28, 2025
Andalusia, the most affected
The lack of budgets also prevents updating the deliveries on account of the financing system, which This represents a hidden cut of more than 1.800 billion euros for Andalusia in 2025. While the Government of Juanma Moreno maintains its commitment to continue investing and lowering taxes, Montero punishes the Andalusian community twice: as an autonomous administration and as a group of municipalities.
“They suffocate us with one hand and steal our opportunities with the other.”, according to the regional leadership of the People's Party (PP). The situation is especially serious in medium-sized and small municipalities, where surplus investments were key to maintaining local employment and boosting the economy.
“More for their advisors, less for the neighbors”
Montero punishes the neighbors without any technical justification. This decision responds to a fiscal strategy by the PSOE focused on absorbing outside resources to sustain its political structure and keep its parliamentary partners happy.
While the budget for senior officials and advisors is increasing, funds that should be allocated to parks, roads, social centers or accessibility are blocked.
Montero punishes the people who have done things better. A institutional abuse and a democratic shame.
Therefore, it is essential that the Minister of Finance immediately allows the use of the surplus by the municipalities, however Montero punishes the councils with a unprecedented arbitrariness, using the budget extension as an excuse to control local spending.
Meanwhile, the Government of Juanma Moreno reiterates its commitment to municipal autonomy and remember that “well-managed resources cannot be penalized.”
What kind of country punishes good management?
The question that many Andalusian mayors are asking is direct: What kind of country punishes those who do things right? The answer, unfortunately, lies in the actions of the current Executive: Montero punishes city councils with fiscal responsibility, while Sánchez rewards those who engage in political blackmail.
The Andalusian People's Party (PP) will continue to defend the right of municipalities to use their surpluses and will demand urgent approval in Congress of new budgets to unlock these much-needed investments for citizens.