As Transfers from the State Budget to municipalities will increase above inflation, totaling 4.4 billion euros next year.
This value represents a growth of 2.7% compared to 2025, highlights the Ministry of Economy and Territorial Cohesion in a statement released this Tuesday, October 21st.
O increase in funds exceeds the inflation forecast for this year, which was 2.4% in September, and that estimated for 2026, which is 2.1%.
The total amount includes a general subsidy for the Financial Balance Fund (FEF), which will be reinforced by 73.3 million eurosequivalent to an increase of 2.2%. There will also be a 3.3% increase in the specific subsidy for the Municipal Social Fund (FSM) and a 5% share in IRS and 7.5% in VAT revenue.
Furthermore, the Parish Financing Fund (FFF) will grow by 2.6%, totaling 407 million euroswith an increase of 10,147,745 euros compared to 2025.
In total, transfers to municipalities and parishes will amount to 4.8 billion euros, which represents an increase of 128 million euros, that is, 2.7% more than expected for this year.
The budget proposal also includes a reinforcement of the Municipal Emergency Fund (FEM), which will increase from six million to 10 million euros in 2026.