Canarias alcanza el 90% de ejecución presupuestaria en 2024
The Hacienda and Relations with the European Union Councilor, Matilde Asián, presented an advance of the 2024 budget execution to the Government Council on Monday based on data communicated by the General Intervention of the CAC to the Ministry of Finance, pending final adjustments in terms of the European System of Accounts (ESA).
Thus, with the information available up to this date, the Government of the Canary Islands has adhered to the forecasts in both expenses and revenues and outcome, allowing the utilization of available resources while adhering to set objectives and applicable regulations.
In terms of expenses, the execution level reached 90.32% for total operations and 89.93% for the subtotal of non-financial operations, having executed or recognized obligations amounting to 11,352.7 million euros out of a total definitive credit available of 12,637.5 million.
Regarding current operations, the execution percentage stands at 97.5%.
The decrease in the execution of capital operations, at 55.81%, is due to expenses from the Recovery and Resilience Mechanism (RRM), whose execution period extends beyond 2024. Excluding the effect of the RRM, the execution of non-financial operations would be at 95.02% and at 75.59% for capital operations.
Comparing these data with previous years, there is an increase in recognized obligations in current operations (chapters I to IV) reaching 10,059.1 million euros in 2024, a 6.6% growth over 2023.
However, recognized obligations in capital operations (chapters VI and VII) show declines of 16.40% and 20.22%, respectively, again due to the impact of the RRM affecting real investments more than capital transfers.
These figures are also affected by the fact that the 2024 budget is, in practice, the first of the new programming period for European funds, as indicated by a government note.
In this regard, excluding the effect of the RRM, the execution level of the 2024 budget in non-financial operations would be at 95.02%, very similar to the 95.01% recorded in 2023 without the RRM effect.
Total recognized obligations in 2024 amount to 12,057.8 million euros, which is a 1.09% increase compared to 2023. The same applies to non-financial operations, which show a 2.97% increase over the previous period.
The government’s commitment to maintaining the welfare state is reflected in the budget execution figures and the volume of recognized obligations by the relevant departments and entities, as detailed by the government.
At the department level, noteworthy are the execution and growth in recognized obligations achieved by the Education department at 96.10% and 94 million more in execution; Presidency, Public Administration, Justice, and Security at 96.17% and 142 million more, and Social Welfare at 91.03% with 153 million more recognized obligations.
At the entity level, the Canary Islands Health Service stands out with an execution rate of 98.98%.
Regarding revenue forecasts in 2024, net rights recognized amount to 11,909.2 million euros in non-financial operations, a figure almost identical to the forecasts in the General Budget Law of the CAC for 2024.
Comparing the total net recognized rights from 2023 to 2024, there is an increase of 513.1 million, a 4.22% growth over the previous year.
Net recognized rights for non-financial operations grow by 689 million, a 6.14% increase, with the largest growth concentrated in chapter IV of current transfers.
PREVISION OF REAL EXPENSE OF THE BUDGET
The budgetary result for the 2024 fiscal year, without ESA adjustments, would show a surplus of 556.5 million euros.
This figure aligns with the estimated closing of the 2024 fiscal year within the framework of the preparation of the General Budget Law for 2025.
However, this figure needs to be adjusted for ESA or national accounting adjustments, for which information is not yet available as it depends on data provided by other entities or administrations.
These adjustments were estimated in the General Budget Law for 2025 at -340 million, setting at 0.3% of GDP the financing capacity of the autonomous community, lowering the actual surplus figure to 175.4 million euros.
This figure, in turn, represents a cycle-adjusted balance and exceptional income and expense of 0.02% of GDP, ensuring structural balance and safeguarding the future of public finances, in line with AIREF recommendations to not finance consolidated public spending with temporary revenues.
In this regard, increased spending could have deteriorated the structural balance of the CAC, risking the structural and financial balance of the Canary Islands, as warned by the government.
The budget execution data for 2024, still without ESA adjustments, have aligned with the forecasts made by the Government of the Canary Islands when preparing the 2025 budgets.
Both in terms of budgetary result and the determination of computable expenses for the 2025 fiscal year, starting from an initial forecast of 11,408.9 million in non-financial operations for 2024.
The actual data for the 2024 fiscal year confirms, according to the government, the accuracy of the forecast, as the final execution amounted to 11,352.7 million, representing a deviation of only 56.2 million euros.
