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Andorra Cuts INH Housing Transfers by 40% in 2026 Budget

Government reduces funding to Institut Nacional de l'Habitatge from €714,916 to €428,972, but expects 54% revenue rise from public housing to offset.

Synthesized from:
Diari d'AndorraARAEl Periòdic

Key Points

  • Transfers to INH slashed 40% (€285,944 cut) from €714,916 to €428,972.
  • Total INH budget up 2.51% to €1,383,490; revenues surge 53.98% to €876,398 from rentals.
  • Personnel costs rise 26.24% (€81,632) for new hires and adjustments.
  • Goal: Self-financing public housing stock covering new projects like Primer la Llar.

The Andorran government plans to reduce transfers to the Institut Nacional de l'Habitatge (INH) by 40% in 2026, from €714,916 in 2025 to €428,972—a cut of €285,944. This appears in the draft general budget law for 2026, due for approval by the Consell General this month.

The INH's total budget for expenses and revenues will nevertheless increase by 2.51% to €1,383,490, maintaining its balanced finances. Government officials expect service revenues to rise 53.98%, from €569,178 in 2025 to €876,398 in 2026—an addition of €307,219. Budget documents link this growth to rental income from public housing units starting management in 2025 and new additions in 2026, which should cover most management and maintenance expenses.

The INH's medium-term goal is to make the public housing stock self-financing through its own income, though officials note it requires the portfolio to reach full operational capacity. Ultimately, revenues from the housing stock or other sources should enable the institute to cover costs for additional projects, such as public protection housing and the Primer la Llar scheme.

Personnel costs will rise 26.24%, or €81,632, to €392,675 from €311,042. This funds directorate remuneration, base pay for permanent staff, social security contributions, salary adjustments for current technicians, plus new hires including a technician, administrator, and caretakers to oversee public buildings.

Among its main duties, the INH develops housing indicators for quantitative and qualitative assessments, advises the government on public housing policies and strategic plans, handles allocations of protected housing, and enforces standards for quality, accessibility, and proper use. The budget allocates funds to meet these responsibilities, including promotion of protected housing, alongside projected service income.

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