Financial Sustainability and SDGS in Spain’s Main Municipalities

After the 2008 economic crisis, the European Union promoted a regulatory framework aimed at correcting fiscal imbalances and strengthening economic stability, which in Spain resulted in the approval of Organic Law no. 2/2012 on Budgetary Stability and Financial Sustainability. In this context, this study analyzes the relationship between financial sustainability and compliance with Sustainable Development Goal 8, focused on economic growth and decent work within the 2030 Agenda. A descriptive and explanatory analysis is conducted on a sample of 103 Spanish municipalities with more than 80,000 inhabitants in 2020. The results indicate that higher GDP levels and lower current expenditure per capita are positively associated with SDG 8’s performance. Additionally, higher unemployment rates may improve the financial capacity of local governments by reducing economic activity and the demand for public services. Overall, the findings show that financial sustainability alone does not guarantee better SDG 8 outcomes, highlighting the need for efficient, responsible, and results-oriented public management.