The Council of Ministers decided on 1 September 2026 to distribute €432 million for programmes of social interest. The funds come from the 0.7 per cent allocation of Income tax (IRPF) and the Corporation tax. For Extremadura €12 million has been earmarked.
The decision follows a proposal by the Ministry of Social Rights, Consumer Affairs and Agenda 2030. According to the ministry, 13 objective criteria are used to distribute the funds, including population, the rate of poverty or social exclusion (Arope), income levels, age structure and territorial dispersion. The aim is to fund services and projects addressing the specific needs of particularly vulnerable people, strengthen poverty prevention, support families and promote social inclusion.
The allocations go to the autonomous communities – with the exception of the Basque Country and Navarre, which have their own financing systems – as well as to the autonomous cities of Ceuta and Melilla. According to the government, the total is higher than in the previous year. The actual amount is based on the sums collected through the tax allocation.
The allocations to the regional governments make it possible for them, in a next step, to launch grant calls and distribute funds to providers, organisations and projects. The timing and precise terms of the calls are the responsibility of the respective administrations. For Extremadura, the allocation can be incorporated into ongoing budget and programme planning; the Junta de Extremadura has not yet published detailed priorities.
The Arope rate is one of the key indicators of social disadvantage used in allocating funds. Regions with below-average economic output or increased emigration have typically seen particularly high demand for programmes in poverty reduction, support for family carers, homelessness assistance and social integration. However, specific priorities for 2026 remain subject to forthcoming calls by the regional government.
Factual basis: The decision is dated 1 September 2026. The funds come from the 0.7 per cent allocation of income tax (IRPF) and corporation tax. The body responsible for the proposal is the Ministry of Social Rights, Consumer Affairs and Agenda 2030; the funds are distributed to the autonomous communities except Basque Country and Navarre and to Ceuta and Melilla.
Editor: Mira Cadena (Article created with AI assistance).