Spanish government cuts Catalan budget by €780m

The Spanish Ministry for Finance cut the Catalan budget for 2018 by €780 million. The Spanish government had already announced in July that it would give €17.617 million to the Catalan executive. Nevertheless, Madrid will contribute less than previously stated to the Catalan budget: it will only give €16,838 million to Catalonia’s government. Madrid argues that it’s due to the extension of last year’s budget.

Some sources from the Spanish government have told the Catalan News Agency (ACN) that Catalonia’s case "is not exceptional” because all autonomous communities in Spain “have been affected by these measures”. Meanwhile, some sources from the Catalan ministry for Economy stressed that the arguments of the Spanish government “make no sense” because the extension of the budget doesn’t affect the income forecast.

The Catalan government didn’t prepare a budget for next year

The Catalan government decided not to prepare a new budget for next year pending the celebration of the October 1 referendum and its subsequent results. The decision was announced last June.