Santa Cruz de Tenerife 17 Mar. (Europa Press) –
The Minister of Finance and Relations with the European Union, Matilde Asan, presented an overview of the 2024 budget execution to the Governing Council on Monday, drawing from data provided by the general intervention of the CAC to the Ministry of Finance, pending final adjustments related to the European System of Accounts (SEC).
Thus, based on the information available at present, the Canary Islands Government has adhered to its projections regarding both expenditures and revenues. This has enabled the efficient use of available resources by aligning with established objectives and applicable regulations.
In terms of expenditures, the execution level reached 90.32% for total operations, while the subtotal for non-financial operations recorded 89.93%, with executed or recognised obligations amounting to 11,352.7 million euros against a total definitive credit of 12,637.5 million euros.
For current operations, the execution percentage stands at 97.5%.
The drop in capital operations execution, which sits at 55.81%, results from the expenses related to the recovery and resilience (MMR) mechanism, as its execution period extends beyond 2024. If the MMR’s impact were excluded, the non-financial operations execution would rise to 95.02%, while capital operations would reach 75.59%.
When comparing these figures to those from previous years, it’s noteworthy that recognised obligations in current operations (chapters I to IV) have surged to 10,059.1 million euros in 2024, representing a 6.6% increase compared to 2023’s obligations.
Nevertheless, the recognised obligations in capital operations (chapters VI and VII) showed increases of 16.40% and 20.22%, respectively, largely due to the MMR’s effects, which significantly impact real investments when compared to capital transfers.
These figures are also influenced by the reality that the 2024 budget essentially marks the commencement of execution for the new programming phase of European funds, as noted by the Executive.
In this context, excluding the impact of MRR funds, the execution level for 2024 in non-financial operations would be 95.02%, closely mirroring the 2023 figure of 95.01% without the MRR effect.
The total recognised obligations for 2024 stand at 12,057.8 million euros, indicating an increase of 1.09% from those recognised in 2023. A similar trend is observed for non-financial operations, which report a 2.97% rise from the previous period.
The government’s emphasis on maintaining the welfare state is evident in the execution and volume of recognised obligations attributed to the Ministry and relevant agencies, as outlined by the government.
In terms of councils, significant execution and growth in recognised obligations is noted, particularly by the Education Councils at 96.10% with an additional 94 million euros in execution; the Presidency, Public Administration, Justice and Security at 96.17% with 142 million euros more; and Social Welfare at 91.03% with an increase of 153 million euros in recognised obligations.
Additionally, the Canarian health service stands out with an execution rate of 98.98%.
As for the revenue projections for 2024, net rights totalling 11,909.2 million euros have been recognised for non-financial operations, which is nearly equivalent to the allocations made in the General Budget Law of the CAC for 2024.
A comparison of the total net recognised rights for the fiscal years 2023-2024 shows an increase of 513.1 million euros, corresponding to a rise of 4.22% over the rights recognised in 2023.
Furthermore, net rights for non-financial operations have risen by 689 million euros, or 6.14%, with the largest growth concentrated within chapter IV for current transfers.
Projected Budget Expenses
The projected budget outcome for 2024, excluding SEC adjustments, is expected to yield a surplus of 556.5 million euros.
This figure aligns with the closing estimate for the 2024 fiscal year, as updated in the drafting of the LGPCAC for 2025.
However, this estimation requires a deduction for SEC or national accounting adjustments, which are pending because they rely on data that must be provided by other entities or administrations.
These adjustments were estimated at -340 million euros in the LPGCAC 2025 and suggest a financing capacity for the Autonomous Community of 0.3% of GDP, thus reducing the actual surplus figure to 175.4 million euros.
This value would result in a balance adjusted to the cycle, considering exceptional revenues and expenses of 0.02% of GDP, ensuring structural balance and the sustainability of public finances, following airf recommendations, without financing consolidable public spending with temporary income.
Therefore, any increase in expenditure could have compromised the structural balance of the CAC, potentially endangering financial stability in the Canary Islands, warns the Executive.
The preliminary data regarding the budget execution levels reached in 2024, still pending SEC adjustments, have been aligned with the execution forecasts made by the Canary Islands government during the preparation of the 2025 budget.
For both the budget outcome and the determination of computable expenditure for 2025, an initial projected execution for 2024 of 11,408.9 million euros in non-financial operations was established.
The actual figures for the 2024 fiscal year, as verified, affirm the accuracy of the forecast by the Executive, as the final execution has been recorded at 11,352.7 million euros, representing a deviation of only 56.2 million euros.
