The City Council of Madrid has announced a budget of €6.901 billion for 2027, reflecting an increase of €323.3 million, or 4.9%, compared to 2026. This budget aims to enhance public services, save taxpayers €31 million, and reduce the city's debt to below €1.5 billion.
Social spending is projected to reach €1.355 billion, an increase of €85 million from the previous year, allowing for an allocation of €387 per resident for social policies, a rise of 6.7% from 2026. Over €900 million will be dedicated to ensuring the effective operation of the Municipal Police, SAMUR (Madrid’s emergency medical service), and the Fire Brigade.
Key investments and projects
The budget includes €678 million for 710 projects, with major works such as the underground section of the A-5 motorway, Parque Ventas, and Parque Castellana expected to be completed. Additionally, 43 facilities, including cultural, social, and sports centres, will either be completed or under construction.
New libraries in Hortaleza and El Cañaveral will open, and a new museographic project will be developed for the Templo de Debod. Furthermore, €18 million will be allocated to boost the city’s commercial and hospitality sectors.
Support for vulnerable groups
The budget will also see €352 million directed towards the Home Help Service, with initiatives aimed at preventing unwanted loneliness and extending free Teleassistance services to those aged 85 and over starting in January 2027. The Municipal Housing Company (EMVS) plans to promote nearly 9,000 homes currently in construction or tender, bringing its total to over 10,500 homes next year.
Economic stability and sustainability
Mayor José Luis Martínez-Almeida, alongside Deputy Mayor Inma Sanz and Economy Delegate Engracia Hidalgo, presented the budget following its initial approval by the Government Board. The budget is described as realistic and aligned with economic forecasts, which predict a GDP growth of 2.3% for Madrid, a social security affiliation of 2.5 million, and an unemployment rate of 7.5%, significantly lower than the national average.
The 2027 budget is structured around four main pillars: responsible management of public resources, enhancement of services for residents, continuity of essential investments, and a responsible fiscal policy aimed at reducing the burden on families and businesses.
Environmental and social commitments
With a strong social focus, almost one in five euros of non-financial expenditure will be allocated to social policies, reflecting the growing population of nearly 3.5 million residents. The budget for environmental sustainability will increase to €2.101 billion, with €650 million dedicated to urban cleaning and maintenance of green spaces.
The budget for the districts will also rise by 4.7%, reaching €1.111 billion, the highest in history, with significant increases for areas such as Latina and Puente de Vallecas. Overall, all districts will see budget increases, ensuring enhanced services across the board.
This comprehensive financial plan aims to maintain Madrid's status as a dynamic and competitive city, prepared for future challenges while prioritising social welfare and environmental sustainability.
