The Galician government announced that the Local Cooperation Fund will reach €203 million in the 2027 budget, representing an 8.4% increase compared to the 2026 allocation. This rise is higher than the average increase in regional accounts for the upcoming fiscal year.
Following a meeting with the Fegamp, the Minister of Finance and Public Administration, Miguel Corgos, highlighted the commitment to financing local entities. With the new Law on Local Administration (Lalga), currently in parliamentary processing, unconditional funds will be reinforced, allowing municipalities to use them freely. Additionally, a minimum annual amount of €100,000 will be guaranteed for fixed expenses in all municipalities.
To facilitate liquidity while the Lalga is approved, it was agreed to provisionally distribute the entire Local Cooperation Fund. The Minister of the Presidency, Justice and Sports, Diego Calvo, noted that the new law introduces funds for municipalities with specific burdens and for strategic investments in municipal infrastructure. Unconditional funds will increase from €118 million in 2025 to €170 million for 2027.
The Xunta aims to address the real needs of municipalities by incorporating distribution criteria that consider factors like aging and geographical dispersion. Galicia has been a pioneer in establishing stable financing for local entities since 2011 through this fund, which is updated annually in the budget laws.
