Andorra Submits 2027 Budget with €835M Spending and €43M Deficit

The Andorran government has submitted its draft 2027 state budget to the Consell General, projecting revenues of nearly €792 million against spending of €834.8 million, resulting in a €43 million deficit—around 1% of GDP and an 11.2% increase from 2026 levels.

Finance Minister Ramon Lladós presented the plan on 17 September, calling it a "budget without surprises" that continues long-standing priorities while leveraging economic growth. He noted that direct taxes, reaching €300 million (up 17%), reflect stronger activity, employment, salaries, and business profits, without raising tax rates. Indirect taxes total €387 million (up 5.7%), with customs duties down due to lower tobacco imports, though traditional commercial sectors remain stable. Additional fees, including a €50,000 one-time contribution for passive residency and self-employment permits, are expected to generate €14-16 million. Lladós described projections as prudent, starting from a 2026 settlement now forecast at a €10 million surplus, up from an initial €40 million deficit estimate.

Housing leads priorities amid the residential crisis, with €29.5 million allocated—plus €35 million from a 2026 extraordinary credit. This covers €5 million for a new rental and mortgage aid program, €4.4 million in social affairs grants, €6.7 million to finish ongoing buildings like Borda Nova II and Cedre, €5 million for property purchases, €1.5 million to incentivize rental developments, and €1.7 million for purchase guarantees. Total public housing investment this legislature will exceed €150 million.

Health receives €130 million (up 7%), including €60 million for CASS social security (+€1 million), €55.6 million for SAAS services (+€6.5 million), €5.4 million for equipment upgrades, and €5.1 million extraordinary funds for a surgical robot and MRI scanner. Education surpasses €100 million (up 7%), with €43.7 million for state schools, €13.3 million for Fundació Privada Nostra Senyora de Meritxell, €5.4 million for the University of Andorra, and €1.5 million to convert Hotel Pol into student housing.

Personnel costs rise 8% to €199 million for public sector pay adjustments and 76 new positions, including 10 police officers and eight firefighters. Goods and services increase 11%, supporting innovation, economic diversification, and a national emergencies centre (€2.3 million). Infrastructure includes €23.5 million for roads such as the Rocafort tunnel, Massana-Ordino bypass, and CG-2 widening at Trava, plus €17.5 million for other routes—totaling €134 million this legislature. Communes receive €87.7 million (+€5.7 million), current transfers reach €368 million (+13%), and capital spending hits €88.6 million (+9%). Other items: €23 million for Andorra Turisme, €12.3 million for free public transport and segregated mobility studies, €5 million for air connectivity including a Paris route, and €11.8 million for innovation and R&D.

Lladós emphasized fiscal caution, with public debt at a 2011 low of 29.4% in 2025 and falling to 28% by year-end—servicing costs at 0.7% of GDP, Europe's second-lowest. The economy grew 3.3% in early 2026, surpassing Spain's 2.7% and France's 0.9%. The budget, filed five weeks early despite August delays, aims to complete key projects, leaving the next government unburdened.