Back to home
Politics·

Concòrdia Tables Amendment to Reject Andorra's 2027 Budget Over Spending Surge

Parliamentary group Concòrdia opposes the bill citing excessive recurrent costs outpacing GDP growth, soaring debt, and lack of investment focus. They demand audits and efficiency reforms to ensure sustainability.

Key Points

  • Concòrdia cites recurrent spending rise to €660.4M, up 10.8% vs 4.8% GDP growth
  • Budget projects €43M cash deficit despite €791.8M revenues; public debt to hit €1,228.4M
  • 92% of extra €84.7M spending goes to routine operations, not investments
  • Group demands spending audit, AI efficiencies, and debt repayment plan with targets

Concòrdia, the parliamentary group, has tabled an amendment to reject the government's 2027 budget bill outright, citing a surge in recurrent spending that outstrips economic growth, persistent cash deficits, and escalating public debt.

The budget projects total expenditure of €834.8 million, up €84.7 million from 2026 excluding financial operations. Operating costs would climb to €660.4 million, a 10.8% increase against forecast nominal GDP growth of 4.8%. Concòrdia notes that nearly 92% of the extra spending targets routine operations rather than forward-looking initiatives.

Even with current revenues projected at €791.8 million—€81.4 million above 2026 levels—the plan still foresees a €43 million cash deficit. Staff expenses are due to hit nearly €200 million, rising €14.4 million year-on-year. The group demands a full audit of public spending to uncover duplications, streamline human and material resources, and assess vacant posts from retirements for possible cuts without redundancies. It also advocates leveraging AI and automation for efficiency gains.

Debt is another flashpoint: the forecast stands at €1,228.4 million by end-2027, €472.1 million higher than 2011, with financial costs approaching €30 million—a 79% rise from 2026. Concòrdia president Cerni Escalé said the best debt is "the smallest possible" and called for a detailed repayment plan with firm targets and timelines.

The group pushes for tighter controls on recurrent outlays amid favourable economic conditions, redirecting funds toward housing, energy, productivity, and diversification to build resilience and ease pressures on social aid.

Share the article via