Loyalty Is Not Submission: Valencia’s Plan for Smarter Spending and Water Management

Spend it better. That is the aim the Minister of Finance, Arcadi Spain, outlined as he announced a series of measures designed to streamline government spending. The Valencian Community, long underfunded by the state, is tasked with keeping a closer eye on how dollars are used, especially in high-cost services such as health care.

In this framework, Arcadi Spain proposed that the Consell submit a concrete proposal for an Efficiency Law in Public Administration. The plan includes a reassessment of health expenditure and a broader management model focused on central purchasing. The strategy envisions expanding this model to more sectors as a way to improve efficiency and accountability across the Generalitat budget.

The minister explained that the new standard centers on three core objectives. First, the continuous evaluation of spending policies and their outcomes to ensure that public resources are managed more efficiently. Second, the establishment of public expenditure review processes to sharpen governance. Third, the integration of performance analytics into budgeting decisions so that every euro spent yields measurable results.

Reinstating the health expenditure assessment, which had stalled during the pandemic, will see both the Finance and Health ministries task the independent fiscal authority Airef with designing a budget strategy. The goal is to make contracting and procurement processes more efficient, and to improve service management and health information systems. These changes are meant to create a more transparent and accountable health sector, with clearer links between funding, service delivery, and outcomes. [Citation: Airef reports, cited by the Ministry of Finance]

The head of finance tied the spending efficiency plan to the financing model, arguing for a realignment of fiscal structures. He spoke of liquidating a portion of the debt and of constructing a model for the state that contends with a debt load exceeding fifty thousand million, while also establishing a temporary fund to smooth transitions. The emphasis was on building a more sustainable framework that can support reform without sacrificing essential services. [Citation: Generalitat financial plan documents]

While expressing cautious optimism about reforming the model, the minister acknowledged concerns about the autonomous system’s long-term viability under the current debt levels. He called for broad consensus and empathy from all political sides, noting that even allies may resist drastic changes. The sentiment was clear: a coordinated approach is needed to avoid drifting into an unsustainable fiscal arc and to secure fiscal space for future needs. [Citation: Budget and planning sessions]

Loyalty is not surrender

Spain, though outside his immediate jurisdiction, could not sidestep questions about open conflict with the national government over water management. The Tagus-Segura transfer remains a contentious issue. He reiterated the Consell position advocating ecological flows aligned with Valencian interests while remaining open to negotiations with Moncloa. His stance was firm: loyalty means staying true to regional priorities without relinquishing them under pressure.

He recognized the undeniable climate reality and the prospect of a future with less water. Yet, as a seasoned secretary of the treasury, he reminded the government that better spending is achievable through measures like desalination, provided they remain affordable. He also underscored the urgency of maintaining the water transfer in the short term to enable a transition to a different model while ensuring water security. [Citation: Regional water strategy reports]

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