Arona Council Reports Unprecedented €33.2 Million Budget Underspend for 2024

The Arona government has recorded a significant budget underspend of €33.2 million by the conclusion of 2024, raising eyebrows among political analysts and local residents alike.

Unprecedented Financial Discrepancies Raise Concerns

This underspend, when combined with the €28.5 million that remained unspent in 2023, totals an astonishing €61.7 million over the span of two years. This figure has been described as unprecedented by representatives of the opposition Socialist party, who argue that such a large amount of unspent funds reflects serious governance issues.

It is noteworthy that the current administration, which includes members from the Popular Party (PP), Canary Coalition (CC), and Vox, has failed to utilize a substantial portion of its allocated budget. This situation is particularly striking given their self-proclaimed status as efficient economic managers. Critics argue that the inability to execute the budget effectively undermines the credibility of the administration’s claims.

Governance Challenges and Budget Execution Issues

The budget for 2024 was the first fully executed under the leadership of conservative mayor Fátima Lemes, who leads a coalition that includes CC and the Más por Arona group, which split from the PSOE in 2020. However, the mayor expelled Más por Arona from the governing coalition in January 2025 due to a perceived loss of confidence, further complicating the governance landscape in Arona.

The underspend is attributed solely to the current government’s decisions and priorities, which have been criticized for their lack of effective policy execution. The year 2024 has been marked by the lowest real investment levels in Arona’s history, with the opposition labeling the execution rate as “practically null.” This alarming trend raises questions about the administration’s commitment to addressing the needs of the community.

Financial Reserves and Ongoing Criticism from Opposition

Despite the underspend, the municipality’s cash reserves have increased to €155 million. However, it is important to note that a significant portion of this surplus has been generated under the current administration, particularly since many budget allocations are typically spent at the end of the fiscal year. This raises concerns about the actual effectiveness of the administration in utilizing public funds for the benefit of the community.

Opposition members have consistently raised concerns during various commissions and plenary sessions regarding the substantial surplus that remains unspent. They have pointed out the implications of unexecuted credits and the fact that the municipal inventory has not been approved after two and a half years of governance. This lack of approval is seen as a significant failure in transparency and accountability.

In stark contrast to previous years, the surplus in 2021 was only €1.2 million, which increased to €3 million in 2022. However, the trend worsened in 2023, with the surplus rising to €127.235 million and an unspent amount of €28.5 million. This trend continued into 2024, culminating in the record €33.2 million underspend. The opposition has criticized the current government’s management efficacy, especially in light of the significant increase in unspent funds. The figures reflect poorly on the administration’s ability to effectively manage public resources and meet the needs of its constituents.

Key points

• Arona Council recorded a €33.2 million underspend in 2024.
• The total unspent amount over two years reached €61.7 million.
• The current government includes the Popular Party, Canary Coalition, and Vox.
• Fátima Lemes is the conservative mayor leading the administration.
• The opposition has criticized the management of public funds and lack of project execution.
• The municipality’s cash reserves have increased to €155 million.
• The municipal inventory remains unapproved after two and a half years.