Canary Islands Parliament Endorses Groundbreaking 2026 Budget with a Focus on Social Welfare

The Canary Islands Parliament has made a significant stride in social policy by officially approving the 2026 Autonomous Budget. This budget is being hailed as the most socially-focused financial plan in the region’s history, reflecting a commitment to enhancing the quality of life for residents across the islands.

Major Financial Commitment to Key Sectors

The newly approved budget totals nearly €12.5 billion, with a remarkable €8.3 billion allocated specifically to vital sectors such as Health, Education, Social Services, and Housing. This allocation marks an increase of €1.5 billion compared to the previous budget established by the Flower Pact government, underscoring a robust commitment to social investment.

During the parliamentary discussions, Deputy Fernando Enseñat from the Popular Parliamentary Group emphasized the government’s dedication to ensuring the ongoing progress of the Canary Islands. He pointed out the necessity of diversifying the economy, creating job opportunities—especially for youth and the long-term unemployed—supporting small and medium-sized enterprises (SMEs), and enhancing essential public services. This multifaceted approach aims to foster a more resilient and inclusive economy.

Increased Funding for Social Services and Education

The 2026 budget showcases a strong emphasis on social spending, with targeted allocations designed to improve healthcare and education across the islands. In the healthcare sector, an additional €183 million is earmarked for staffing, alongside €28 million aimed at reducing waiting lists and updated travel allowances for patients living on non-capital islands. Furthermore, €5.2 million is designated for a comprehensive strategy addressing rare diseases, reflecting a commitment to specialized healthcare needs.

In the realm of education, the budget includes €8 million for the Free Books Programme, €25 million for school meals, and €22 million for educational aids. Additionally, €126 million is allocated for the Class Size Reduction Programme, which aims to combat school failure and improve educational outcomes. The plan also encompasses the creation of between 1,500 and 1,700 new early childhood education places, alongside a significant investment in vocational training to prepare students for the workforce.

Focus on Housing and Economic Development

The 2026 budget places a strong emphasis on housing initiatives, allocating nearly €200 million for public housing construction. This marks the largest budget in the history of the Canary Islands Housing Institute, reflecting a commitment to addressing the housing crisis. The funding will support rental assistance programs and youth mortgage initiatives, as well as introduce new tax reductions for primary residence purchases, making homeownership more accessible.

In addition to housing, the budget allocates €686 million to bolster the productive economy, which includes the Self-Employed Support Plan. This plan features financing interest reductions and various programs aimed at supporting entrepreneurs and small businesses. The tourism sector, a cornerstone of the Canary Islands’ economy, will receive €260 million, with a focus on sustainability and responsible tourism practices. Furthermore, €350 million is directed towards employment policies designed to reduce unemployment rates and enhance the training and employability of residents, ensuring that the workforce is equipped to meet the demands of a changing economy.

The budget also continues the Fiscal Relief Plan for families, adding an extra €44 million in tax reductions, building on previous years’ efforts to alleviate financial burdens on households.

Legislative Negotiations and Challenges

Despite the positive reception of the budget, Deputy Enseñat expressed disappointment regarding the opposition’s reluctance to engage in meaningful negotiations. He noted that out of the 40 amendments proposed for discussion, only 12 were accepted, indicating a lack of constructive dialogue. This situation raises concerns about the collaborative spirit necessary for effective governance and the potential impact on future budgets and policies.

Key points

• The Canary Islands Parliament has approved a €12.5 billion budget for 2026.
• €8.3 billion is allocated to Health, Education, Social Services, and Housing.
• This budget represents a €1.5 billion increase over the previous administration’s budget.
• Additional funding includes €183 million for healthcare staffing and €8 million for the Free Books Programme.
• Nearly €200 million is designated for public housing construction.
• €686 million is allocated to support the productive economy and self-employed individuals.
• The budget continues the Fiscal Relief Plan with an additional €44 million in tax reductions.