Spanish government slashes housing ministry budget amid broader credit reallocation

The cabinet has cut the housing ministry's budget dramatically, removing a large share of its previously available credits. At the same time, the total credit approved for the state administration has risen relative to the prior year, driven by higher allocations to privileged ministries and other public bodies. Eleven of the twenty-two ministries faced reductions, while the other eleven saw their budgets expanded.

The government plans to pass two decree-laws, previously rejected, to intervene directly in the housing market, a step that has hastened the call for early general elections. Officials argue the measures aim to address foreign investor behavior and rental supply, though critics claim they create a manufactured crisis for political gain.