Spain has become one of the most decentralised countries among developed countries since 1978. Nevertheless, local governments have been kept out of this decentralization process. The aim of this article is to explain the current framework of local expenditure from the point of view of the principle of local autonomy, sacred by the Spanish Constitution. Local expenditure budgets will be analysed, finding out two characteristics
of local expenditure: concentration and diversity, both from geographical and size terms, and identifying some possible reasons for these facts. Finally, the article introduces the Local Pact for Spain, its fundamentals and goals, and the main problems that a second decentralization from regional governments to local authorities may face.