The Arrecife City Council has reported to the city's Plenary, in the session held this morning, on the budgetary stability report corresponding to the settlement of the 2025 fiscal year, prepared by the municipal Comptroller's Office, in which compliance with the stability objectives, spending rule and debt limit is confirmed, marking a turning point in the economic management of the capital.
This result gains special relevance if it is taken into account that since the year 2022 the City Council had been breaching the spending rule, a situation that even forced the approval of an Economic Financial Plan in 2024 to correct the existing imbalances.
According to the report, the settlement of the 2025 budget presents a financing capacity of 7.1 million euros, which implies a surplus situation in terms of national accounting. In terms prior to adjustments, the balance between income and expenses shows a positive balance of 14.7 million euros, reflecting a solid and balanced budget execution.
Furthermore, the City Council complies for the first time in recent fiscal years with the spending rule, setting the computable expenditure at 72.57 million euros, below the maximum limit allowed for 2025.
As for the debt, the report places the level of indebtedness at 26.23% of current income, well below legal limits, which confirms a healthy financial position.
Given this change of direction in economic management, the deputy mayor and head of the economic area, Echedey Eugenio, has pointed out that “Arrecife leaves behind a stage of non-compliance and enters a new phase of stability, rigor, and good management. It is not a coincidence, it is the result of serious, constant, and responsible work.”
Likewise, he stressed “we have gone from having to approve an Economic Financial Plan in 2024 to meeting all indicators in 2025. That means that this government has known how to put the accounts in order without giving up continuing to invest in the city”.
The municipal official also highlighted that this balance has been achieved by maintaining the level of services and executing investments, with more than 70 million euros in non-financial expenditure and close to 85 million euros in revenue, which demonstrates that it is possible to reconcile management and stability.
“Complying with stability is not an end in itself, it is the basis for continuing to transform Arrecife with guarantees, without mortgaging the future of the residents,” stated Eugenio, stressing that the fulfillment of these objectives not only responds to a legal requirement, but also opens the door to new opportunities for the city, by improving financing capacity, facilitating investments and strengthening institutional credibility.