Consell authorizes 1.859 billion in debt for the DANA and public services

The Consell has authorized the creation of public debt by the Generalitat during the 2026 financial year and the month of January 2027, with the limit that the outstanding balance as of December 31, 2026, does not exceed the balance recorded on January 1, 2026, by more than 1,859,744,240.00 euros. The decision was adopted through the Agreement of September 25, 2026, of the Consell, at the proposal of the Minister of Economy, Finance and Public Administration. The text is published in the Official Gazette of the Generalitat Valenciana (DOGV) no. 10461, of September 29, 2026, section III, with the official reference DOGV-C-2026-30148.

The authorization is based on Article 51 of Law 4/2026, of July 22, on the budgets of the Generalitat for the 2026 financial year, which empowers the Consell to increase debt at the proposal of the head of the department competent in treasury matters. The agreement is also adopted under Article 82 of Law 1/2015, of February 6, on public finance, the instrumental public sector and subsidies, and following the mandatory reports.

An effective ceiling at closing and revisable during the year

The limit of 1,859,744,240.00 euros is calculated based on the outstanding balance: the debt as of December 31, 2026, may not exceed the existing debt as of January 1, 2026, by that amount. The agreement itself specifies that this cap will be effective at the end of the financial year and may be exceeded during the course of the year, as Article 51 of Law 4/2026 provides for cases in which the limit is automatically revised.

The regulation serving as the basis for the operation is:

• Article 51 of Law 4/2026, of July 22, on the budgets of the Generalitat for the 2026 financial year.
• Article 82 of Law 1/2015, of February 6, on public finance, the instrumental public sector and subsidies.
• Decree 33/2026, of February 27, of the Consell, approving the Organic and Functional Regulations of the Department of Economy, Finance and Public Administration.

January 2027 and debt management

The agreement also enables the Consell to arrange for the creation of debt during the month of January 2027 for an amount that does not increase the authorization by more than 15%. This increase will be calculated for the purposes of complying with the debt creation limit authorized for the entirety of the 2027 financial year.

The management of debt and guarantees of the Generalitat corresponds to the General Directorate of Financing of the Regional Secretariat of Finance and Financing, according to the distribution of competencies established by Decree 33/2026.

Dana, public services and an uncertain scenario

The agreement links the operation to the need to sustain the Recovery and Reconstruction Plan for the areas affected by the DANA of late October 2024, the execution of which requires, according to the text, a specific and sustained budgetary effort in the coming fiscal years. The Generalitat Budget Law for 2026 responds, it adds, to three objectives:

• Guarantee the continuity of the recovery and reconstruction actions in the areas affected by the DANA.
• Ensure the provision of fundamental public services.
• Adapt the public action of the Consell to an especially uncertain economic and financial scenario.

That scenario is described as being conditioned by the evolution of the international situation, inflation, interest rates, the extension of the State general budgets, and the lack of approval of fiscal objectives.

Impact on the accounts of the Comunitat

The authorization affects all the accounts of the Generalitat and, by extension, the taxpayers of the Comunitat Valenciana, as it expands the borrowing margin with which both the reconstruction after the DANA and the ordinary operation of public services will be financed. The margin remains conditioned by the closing of the fiscal year and the exceptions that trigger the automatic review of the limit, such that the final volume of debt will depend on the evolution of the budgetary execution and the financial context.

Source: Diari Oficial de la Generalitat Valenciana (DOGV), no. 10461, of September 29, 2026, section III, p. 1-2 (official reference: DOGV-C-2026-30148).