Spain's government on Tuesday approved plans to raise the spending ceiling for 2027 by 6.6% to its "highest ever" level, though the chances of getting the measures through a fragmented parliament were slim.
The new ceiling envisages public spending of €226 billion ($258 billion) for next year's budget, Budget Minister Arcadi España said.
The plan followed forecasts last week of stronger economic growth , narrower deficits and lower unemployment over the next three years than previously expected, as the country continues to outpace a mostly sluggish euro zone.
The government has not introduced new budgets in the past three years because it lacks support in a fragmented parliament, instead rolling over the 2023 accounts.
The 2027 budget, which is in the works, will be "socially ambitious and fiscally responsible", España said.
In November, the government's last attempt to raise the spending ceiling failed.
"I call on the political groups to set aside partisan interests and focus on the common good, and to consider the budget we will be presenting – the budget our country needs," España added.
Some of the smaller parties the government has relied on in the past to pass laws have written off the remainder of the term due to corruption investigations dogging the ruling Socialist Party.
The government expects the lower house to vote on the spending ceiling on July 14.
($1 = 0.8747 euros)