Andorra Sets 2027 Budget at €834.8M Spending, 28.1% GDP Debt

The Audit Office has published fiscal sustainability and budgetary stability targets for Andorra's general administration in 2027, setting current spending at €834.841 million and public debt at 28.1% of GDP.

These parameters appeared in an edict published in the Official Gazette (BOPA), in compliance with the Public Finances Sustainability and Fiscal Budgetary Stability Act, or "golden rule." The spending limit marks a 10.8% rise from the 2026 cap of €750.22 million, exceeding the 4.8% reference rate tied to nominal GDP growth as calculated by the Statistics Department for 2024-2027.

The higher ceiling draws on an alternative mechanism in the law, justified by a projected real investment execution ratio of 10.6%—relative to total budget settlements excluding financial asset and liability variations—that tops the 6.9% five-year average from 2021-2025 general accounts approved by the government.

Public debt is set to fall from the 30.5% of GDP projected for 2026. The targets cover only the general administration; separate figures for communes will determine the overall debt objective for the Principat once available.

The edict advances the 2027 budget preparations, aligning with requirements under the golden rule while omitting any reference to direct taxes' revenue share—a stipulation dropped by an April legal amendment amid stronger corporate and income tax performance.