Alicante Provincial Council Budget and Investment Update: 2022–2023 Outlook

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The investment plan of the Alicante Provincial Council has grown across its current four-year mandate. Increasing resources for the provincial municipalities comes with a smaller share for the municipalities themselves. Budget execution shows that, by the end of 2022, the share stood at 52.85%. The report published by the provincial intervention office reveals that real investments, categorized as the sixth chapter of the budget, and capital transfers, the seventh chapter, are executed at about 20%. The figure of 27.81% drew strong criticism from the left-wing opposition formed by PSPV-PSOE and Compromís. Delays in project realization and the assessment of the investment increase have been linked to a government team accusing policy of a bureaucratic collapse. According to María Gómez, the deputy treasurer, the obstacles imposed by the Public Sector Contract Law and the slowdowns in the construction sector affect all municipalities in the province, she noted.

Total amount

The provincial council reported a total expenditure of 502 million euros for 2022, with 272 million in initial loans and 230 million in loan modifications. Recognized obligations reached 265 million. In 2021, expenditure was 394 million, excluding changes, while 311 million was recorded in 2020 and 289 million in 2019. Recognized liabilities were 244 million (2021), 202 million (2020), and 190 million (2019), leaving the overall percentages to apply at 62%, 65%, and 66% respectively. The share of real investments stood at 24% in 2021, 42% in 2020, and 39% in 2019.

Tax offices

Executions run into the millions, marking a record across all jurisdictions. More funds flow from the county council to municipalities for aid, and justification periods are lengthening. Yet, observers warn of a bureaucratic collapse, as noted by the Undersecretary of the Treasury, María Gómez. It can take a year and a half, or even two, from the moment the city council receives the funds until all procedures are completed. A bottleneck now impacts all administrations, especially the smallest ones. However, it is not a lack of will to contribute to development; it is a strain on administrative processes that needs to be addressed, according to the mayor of Almoradi.

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PSPV and Compromís criticized the executive and the administration under the leadership of Carlos Mazón. There is concern about governance in the absence of a clear county council president, argued Toni Frances, a socialist representative. Gerard Fullana of Compromís described the current execution as the worst in memory.

284 million budget and the largest extra expenditure in history

Regardless of the execution rate, tensions between the government and the opposition intensify inside the Alicante Provincial Assembly. President Carlos Mazón, representing the Popular Party, emphasized a 4.3% rise in the current year’s budget to 284 million euros and highlighted a record 161 million in extraordinary investments slated for the final term of the mandate. The opposition, formed by PSPV-PSOE and Compromís, questioned the overspending as evidence of mismanagement and non-executed funds. Deadlines further fuel the dispute. With regional elections already called, Mazón unveiled a new work plan for the coming period, inviting accusations from the PSPV that electoral motives drive the announcements. Compromís said it would challenge Mazón’s statements before the Election Board to highlight the electoral context.

For the 2023 budget of 284 million, the administration points to support for the province’s productive sectors amid the Ukrainian crisis, inflation, and energy challenges. Notably, 133 million is allocated directly to Alicante municipalities to ensure service delivery, combat depopulation, and protect citizens. The additional 166 million is earmarked for subsidies aimed at supporting self-employed individuals, small and medium-sized enterprises, and vulnerable groups hit by the economic and energy crisis. Municipalities will receive 15 million in social benefits, added to other initiatives such as social bonds.

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