How is it prepared and approved?

The budget is prepared by the government team (draft budget) and initially approved by the Municipal Council's Committee for Economy, Business and Employment. It then goes out for public consultation for 15 days, following its announcement in the Official Provincial Gazette, during which time anyone interested may examine it and submit a challenge or appeal. A Public Hearing is given within that 15-day period. Final approval of the budget falls to the Municipal Council Plenary.

If the budget fails to receive the final approval before 31 December, the previous budget is automatically extended (Extended budget) into the new fiscal year (including some of the final adjustments established by the regulations).

Draft budget preparation process

Barcelona City Council annual budget elaboration process is based on the Executive Budget model (linkage of resource allocation and management with municipal strategy) and is framed in a medium-term financial framework. It starts with the municipal revenues forecasts (under the fiscal ordinances to be approved) and the specification of the maximum level of expenditure that the Council may incur, to enable it to comply with the regulations and goals on budgetary stability and with its own financial goals. The expenditure ceiling and set financial goals establish the maximum amounts for current expenditure and capital expenditure (investments).

Capital expenditure is allocated to several investment projects under the government's strategic priorities within their multi-annual program (Municipal Investments Program).
Financial revenues and expenditures are budgeted taking into account the financial framework and the City Council's funding and operational needs.

As for current expenditure, ceilings are allocated, under the priorities set out by the government team, for the various organisational units that make up the City Council. These units make their resource-allocation requests for their programs and projects in accordance with the indicated ceilings. The budget allocation requests formulated are then reviewed and final adjustments are made to ensure the allocations meet the priorities specified by the government team.

Once the final budgetary allocations have been made, the draft budget and its accompanying documents are prepared and then presented.

 

More information

 

For more information consult the section Basic concepts of the budget.