The Department of Innovation, Industry, Trade, and Tourism, the only one based in Alicante, has faced significant reductions as the Generalitat adjusted its budget to balance accounts while preserving social spending. The department, led by Nuria Montes, reduced its total expenditure by about 15.5 percent. The current year’s budget stood at 628.5 million euros, with 530.2 million euros planned for the following year, according to the bill the Consell sent to the regional Parliament on Monday.
One of the notable shifts occurred at the Valencian Institute for Business Competitiveness, Ivace, which has redirected substantial regional aid to local enterprises in recent years. Ivace’s allocations declined from 193.9 million euros to 167.1 million euros, a decrease of 26.7 percent.
Similar declines affected the regional tourism sector, with the Valencia Community Tourism budget dropping from 94.9 million to 74.5 million euros, a 20.4 percent reduction. The Valencia Innovation Agency (AVI) will also see a reduction, with its 2024 allocation capped at 63 million euros, down from 68.6 million euros guaranteed previously. This marks a broader tightening across innovation and tourism initiatives.
In one photo, the Ministry’s leadership, including Nuria Montes (center), stands with the Treasury chief, Ruth Merino, illustrating the ongoing recalibration of state spending.
The Ministry notes that these adjustments respond to commitments from the Generalitat’s president, Carlos Mazón, aimed at preserving social services despite the austerity pressures that hit other departments. The reductions largely come from eliminating nonessential expenses and postponing projects that have not yet materialized, rather than cutting existing social programs.
One example is a pending innovation center project associated with the former Amaro fishing company, located at the Port of Alicante. The Montes team proposes maintaining this project, which had 4.8 million euros earmarked for this year. Although the Generalitat does not yet own the property, the plan reduces the 2024 donation to 193,000 euros with most work expected to begin next year. A similar pattern appears with the Learning Factory Elche, which is set to receive 156,000 euros, along with related funding to support the GNA’s participation in the project.
The ministry emphasizes that it seeks to distribute adjustments across different departmental lines without eliminating any program. In tourism, a more sustainable path is being pursued, ensuring continued travel and visitor services into the next financial year, albeit with a provisioned 12.5 million euros instead of the current 15 million as previously announced. Even with the general cut in aid to companies, the government plans to increase funding for strategically important, competition-based projects—from four million to ten million euros—to help more small and medium-sized enterprises access them. Additionally, more funds will be allocated to build a network of AI centers to boost regional innovation capabilities.
Budgets reduce investments by 18% for 2024
Analyses by the Digital Transformation Project Community, drawing from studies of the City of Light and the Digital District, indicate that the Generalitat’s budgets foresee a narrow improvement in revenue from the sale of services, rising from 1.6 percent to 1.6 percent. An additional 5 million euros is anticipated from service withdrawals. While these changes are significant, they are not expected to derail the public company’s trajectory. Losses in some areas are expected to shrink markedly, dropping from 33.8 million by the close of 2023 to 18.8 million in the coming year. The Council’s projections also anticipate a new capital inflow of about 8.7 million to balance the accounts.
Public IT and transport services are highlighted as key sectors for the year ahead. The newly established public company responsible for managing IT services is projected to generate revenues of 73.6 million euros next year, reflecting an 18 percent increase since early in the year when privatization of some services began. This includes an additional subsidy of 6.5 million euros. With these figures, the entity is expected to record a profit of 7.1 million euros. The plan also foresees a gain of 120 thousand euros in IFA, contributing to the overall financial outlook.