Canarian Government Sets Ambitious Budget Goals for 2025

The Canarian Government is aiming for an impressive budget utilization rate of approximately 97% by the conclusion of 2025, as stated by President Fernando Clavijo. This goal reflects the administration’s commitment to maximizing the effectiveness of public funds and enhancing the region’s development initiatives.

Identifying Budget Execution Challenges

In a candid discussion, Clavijo acknowledged that certain expenditures related to development might only achieve a utilization rate between 45% and 50%. He attributed these setbacks primarily to the stringent requirements imposed by the National Contracts Law, which complicates the administrative processes necessary for project execution. This law has been particularly burdensome for public works and investments, leading to delays that hinder timely budget management. In a recent interview with Radio Canaria, Clavijo emphasized the urgent need for a comprehensive review of the Public Sector Contracts Law to streamline procedures and enhance efficiency in budget management. Despite these hurdles, he remained optimistic, noting that once contracts are awarded, the progress of public works has been reasonably good.

Infrastructure Projects: A Closer Look at Delays

Clavijo specifically highlighted that the most significant delays are occurring within infrastructure projects, which are subject to a series of complex processes. These include environmental impact assessments and protracted contracting procedures, both of which can be extended due to appeals and disputes among competing companies. The president underscored that while execution rates in some development areas are currently low, this does not necessarily indicate a loss of funds. He reassured stakeholders that as projects advance over the coming years, substantial progress is expected, particularly in initiatives that span three to four years, where work often accelerates in the later stages.

Examples of Long-Term Projects Underway

To illustrate the current situation regarding infrastructure development, Clavijo pointed to several long-term projects that are emblematic of the challenges faced:

• The closure of the insular ring with the Erjos tunnel in Tenerife, a project crucial for improving connectivity.
• The La Aldea road project in Gran Canaria, which aims to enhance transportation access.
• The upcoming tender for the Pozuelo section in Fuerteventura, involving a significant investment of €215 million aimed at bolstering local infrastructure.
• The LP-2 project in La Palma, which has encountered notable delays, impacting overall project timelines.

European Funds Management: Navigating Bureaucratic Hurdles

In addition to the challenges related to domestic budget execution, Clavijo addressed the complexities surrounding the management of European funds. He attributed these difficulties to the administrative centralization imposed by the State, which has resulted in increased bureaucracy that obstructs the timely execution of available resources. Officials from the Canary Islands have raised these concerns with European authorities, advocating for a more direct allocation of funds to regional governments. This shift would potentially streamline processes and enhance the effectiveness of fund utilization at the local level.

Looking Ahead: The 2026 Budget Proposal

As part of the government’s financial planning, Clavijo discussed the budget approved for 2026, which totals €12.4914 billion. This figure marks an increase of €813.2 million compared to the current budget, reflecting the administration’s commitment to investing in the region’s future. Clavijo assured citizens that the government possesses the necessary capacity and strategic planning to effectively utilize these additional funds, aiming to drive growth and development across the Canary Islands.

Key points

• Fernando Clavijo projects a 97% budget utilization by the end of 2025.
• Development spending may only reach 45% to 50% due to regulatory challenges.
• The National Contracts Law is cited as a barrier to efficient project execution.
• Infrastructure projects face delays from environmental assessments and contracting issues.
• Long-term projects include the Erjos tunnel and La Aldea road.
• European funds management is hindered by bureaucratic centralization.
• The 2026 budget is set at €12.4914 billion, reflecting a significant increase.