Not all municipalities in the province can meet the requirement to begin the year with approved budgets. Over the past several years, causes have varied. This time, two forces directly affect why about half of the largest towns have not yet updated their accounts. The first factor often cited by mayors is inflation, which creates imbalances that complicate the preparation of budget items. The second factor, sometimes described as a practical concern, is that municipal elections are approaching, prompting some consortia to consider delaying budget approvals to confirm the composition of new administrations before moving forward.
Touring the state’s major town halls paints a notably uneven picture of budget updates. Consortia that have fulfilled the obligation include Elche, Santa Pola, Crevillent, Villena, Novelda, Petrer, Altea, Calp, San Vicente del Raspeig, and Sant Joan d’Alacant. In contrast, municipalities such as Alicante, Xixona, El Campello, Benidorm, Vila Joiosa, l’Alfàs del Pi, Elda, Aspe, Alcoy, Ibi, Torrevieja, and Orihuela have not completed their budgets for the year. actors from across the political spectrum show delays for various reasons and for some, the budgets remain unresolved for the current year.
All this persists despite what the legislation requires, and in some cases, the rules can appear strict. For instance, when a council cannot approve its accounts for a year for certain reasons, the subsequent extension is narrowly permitted. The law warns that extending the budget beyond one fiscal year can hamper the municipal administrative system and affect ongoing projects.
Nonetheless, towns like Torrevieja have extended their accounts rather openly, sometimes through large loan amendments. In Orihuela, the post no-confidence situation that brought the PSOE to the mayor’s office has compounded the difficulty of approving new accounts. In such cases, residents may have to wait until after the municipal elections to see progress.
Wishes
In Alicante, the aim of mayor Luis Barcala to wrap up the term with timely budget approvals has collided with rising energy costs and inflation, which require careful item adjustments. Since 2015, the City Council in the provincial capital has struggled to complete calculations within the target timeframe, regardless of party lines.
Evidence that political color is not the sole factor lies in the examples of Benidorm and Alcoy. Benidorm’s mayor, Toni Pérez, and Alcoy’s, Toni Frances, describe the current environment as marked by uncertainty and volatile forecasts. Energy and water costs rose sharply in 2022, necessitating adjustments. In their view, immediate publication to residents was constrained by complexity, while the primary goal remains to update accounts in January whenever possible.
Regarding Alcoy, Frances notes that the budget is particularly challenging due to energy costs, so the process has focused on a liquidation stage to set items at maximums. The objective is to obtain budget approval in February, a timing often observed in practice, as Frances reminds. Meanwhile, small municipalities across the region—Adsubia, Agost, Alcosser, Almudaina, Beneixama, Benifato, Benimarfull, Campo de Mirra, Cañada, Confrides, Fageca, Millena, Muro, Novelda, Polop, Sagra, Vall d’Ebo, and Vall de Gallinera—have shown greater cohesion in managing their accounts during the year.