Andorran Parishes Approve Varied 2026 Budgets Amid Revenue Challenges

**Andorran Parishes Approve Varied 2026 Budgets Amid Revenue Challenges**

Canillo parish council approved its 2026 budget on Thursday, totalling 30.2 million euros—a 9.2% increase from the previous year. Investments reached a record 12.4 million euros, representing over 40% of spending. Consul Major Jordi Alcobé called the plan balanced, emphasising public services, sustainability and infrastructure. Revenues are projected at 16.3 million euros from operations, 7.5 million from capital and 6.3 million from financial sources, driven by 52.3% growth in direct taxes and 26.3% more from assets. Current spending totals 15.7 million euros.

Key initiatives include 3 million euros to improve Canillo village aesthetics, 1.4 million for renovating telecabina building shops, and 750,000 euros towards a 3.25 million euro modular community centre at Forn de Calç. Further funds go to road safety (400,000 euros), equipment (360,000 euros) and playground upgrades in Soldeu, l’Aldosa and Ransol (50,000 euros). The council also approved buying a 4,500-square-metre plot at Prat del Portal de Branqueta for 2.6 million euros to create protected green space.

Canillo delegated management of Pont Tibetà, Mirador del Roc del Quer and Ca’l Federico to the Palau de Gel operator for at least 751,000 euros annually in fees, potentially up to 25% of their revenue. The operator will handle the Armiana cable car, linking former Pla campsite land to trails and cutting parish costs. Alcobé praised the arrangement for boosting family tourism efficiently.

These measures build on strong third-quarter 2025 performance: a near-4 million euro surplus, 51.7% revenue utilisation, 37.8% expense execution, zero debt and 7.7 million euros in reserves.

Ordino parish approved its 2026 budget on Thursday, projecting 16.2 million euros in revenues—1.3 million less than 2025—against 21 million euros in expenses, yielding a 4.8 million euro deficit funded from reserves. Finance councillor Ludovic Albós highlighted prudence amid challenges, mainly urban planning changes slashing construction taxes by about 1.8 million euros, a trend expected to persist. Investments total 4.6 million euros, covering 820,000 euros for surface parking, 800,000 euros for water network phase three, 400,000 euros for a Serrat biomass facility and 390,000 euros for sports centre roof repairs. Current expenses rose 2.32% to 14.84 million euros, due to staffing and grants. Debt will fall 980,000 euros to 9.45 million euros.

The minority, led by Enric Dolsa, abstained, citing personnel costs at 7.36 million euros (up nearly 3%), current revenues down 20% to 7.04 million euros and an operating deficit near 7.8 million euros. Dolsa called for spending cuts, a hiring freeze and redirecting about 9 million euros in annual government transfers from current to capital spending. Consul Major Maria del Mar Coma and Albós countered that prior investments require upkeep, legal requirements drive staffing needs and population growth supports ludoescola and sports expansions. They noted the shift away from construction dependency under the new POUP, urging new revenue streams to avoid regular borrowing within three years.

Andorra la Vella parish approved its record 60.4 million euro 2026 budget—later reported as 60.5 million euros—on Friday, with investments at 13 million euros (21% of total), up 18% from 2025 and covering 152 initiatives. Revenues are forecast to rise 7.2%, propelled by a 30.7% jump in urban planning income from construction rights, ITP and real estate fees. Consuls Major Sergi González and Minor Olalla Losada focused on housing, urban renewal, sports and environment, including 30 affordable homes at Cedre in Santa Coloma, senior housing upgrades at Calones and Reviu programme enhancements. Leaders sought greater national government aid for shared services. The budget anticipates a 1.5 million euro deficit, with nearly 2 million euros to reduce debt.

About 70% funds current spending: 21.5 million euros on personnel with bonuses and new hires, and 21.7 million euros on contracts and outsourcing. Finance councillor Joaquim Miró described the accounts as ambitious, shaped by technical input and past execution trends, while stressing no over-reliance on construction amid signs of slowdown.

Debate intensified over fee hikes, averaging 2.5% but exceeding inflation on daily essentials, Democrats David Astrié and Rosa Maria Sabaté argued. They voted against the budget and new rate schedules, due next week in the BOPA, decrying "simultaneous and accumulated" increases hitting family purchasing power amid rising living costs. Examples included a four-adult family with a dog and city-centre parking pass facing 902 euros more annually, or a couple with a child, two dogs and parking facing 438 euros extra.

Specific rises cover Serradells subscriptions (25% average, adding 7.50 euros monthly for residents), parking passes (2.5%, from 2.80 to 2.90 euros), hourly tickets (3.5%), fire and place tax (4.5% to 30 euros yearly, plus 1.50 euros), dog tax (7.87%), hygiene fees (5.5%) and towing (31%). Astrié questioned the 31% urban planning surge, "trust positions", 9% fair budget rise and Serradells overcrowding from a prior 35% cut, creating a 2 million euro annual cost and 1.5 million euro deficit. He urged ending 30-minute free tourist parking, affecting non-PK residents too, and more gradual hikes.

Losada explained Serradells reforms simplified a "poti poti" of old subscriptions—some legacy free access for over-65s—into two options: full access (gym, pools, relax, guided activities) at 405 euros yearly (residents) or 540 euros (non-residents), 37.50/50 euros monthly; or gym/pools/relax at 324/432 euros yearly, 30/40 euros monthly. Annual direct debit offers 10% off. She tied changes to population growth, recent upgrades like gym air-conditioning and 2026 locker reforms, with 3,600 users now enrolled.

The majority defended hikes as a "responsible review" far below full service costs, with no self-financing goal. González stated, "Our approach is not to make cash," confirming free half-hour parking stays. Miró noted the fire tax adds just 1.50 euros. The civil but tense exchange underscored absolute versus percentage impacts, past spending growth from 15 million euros in 2019 to 19 million in 2023, and urbanism risks.

Other approvals included 147,810 euros for Can Rodes add-ons—drainage, campervan-car separation, dog zone and event networks—transforming unused land into a key public space, per councillor Jordi Cabanes. Also greenlit: 353,179 euros for Baixada del Molí sidewalk upgrades (numbers 21-37), boosting accessibility, pedestrian safety, traffic calming, bike lanes, paving, lighting, utilities and a green plaza near Pavelló Toni Martí.