New budget proposal to maximise the city’s resources for 2024
The new municipal budget proposal reaches 3,807 million euros, some 5.9% higher than the figure for 2023. The proposal is similar to the one which failed to prosper in October, with the addition of the 71.9 million euros that the Spanish government announced it would be transferring. The budget focuses on guaranteeing social support and welfare for citizens, driving the transformation of the neighbourhoods and adding more vitality to the economy. The Special Commission for Economy and Tax has given its initial approval and the proposal now enters the public scrutiny stage.
The goal of the new budget proposal is to guarantee and maximise the resources available and the city’s capacity for investment, limited to the current budget extension, without pushing up the burden for taxpayers in the city. The approval of the new budget means being able to use 715 million euros, between ordinary resources and investments, and being able to move all current projects forward.
Social services as a priority
A growth in available resources is expected, reaching 2,940.1 million euros, some 6.9% more than in 2023. The areas with the greatest current expenditure are:
- Social services and social promotion, with 438.7 million, providing support for dependency, covering the basic needs of vulnerable families and emergency accommodation for the housing crisis as the main budgetary items.
- A total of 419 million will be used for ordering and maintaining public space, with budgetary items for cleaning, waste collection and sewerage.
- Safety and prevention, with 396 million euros for measures in this area.
More investment
Overall investment in the city is expected to reach 944 million euros. This figure includes the 777.6 million from the City Council itself, the highest figure in the last 15 years, plus 152.7 million for work to enlarge the public housing pool through BSM and the Barcelona Municipal Institute for Housing and Renovation (IMHAB).
The big strategic transformation projects in the city will get funding in the budget for 2024. In the case of La Rambla, this should mean 8 million out of the 48 million planned for this term of office, while the project to cover the Ronda de Dalt will get the first 6 million euros out of the 34 million planned between 2024 and 2027.
In the case of the Neighbourhood Plan, and in keeping with the commitments made, there should be an investment of 30 million euros in 2024. In addition, 13.6 million will be invested in the first year of the climate control plan for schools, which entails an investment of 100 million euros through to 2029, funded with part of the income from taxes on tourism.
Other investments include 14.4 million euros to improve the groundwater network to tackle the drought; 12.9 million for the revamp to the Mercat de l’Abaceria, and 15.3 million for schools. Similarly, an investment of 14.6 million euros is planned to continue the work currently under way in Via Laietana, plus 11.5 million for the transformation of Ronda Sant Antoni.
Responsible proposal that maintains financial solvency
The budget proposal represents nearly 4% of the city’s GDP and has been drafted adopting prudence and responsibility as criteria, ensuring the City Council’s principles of solvency, recognised and endorsed by the different ratings agencies.
The proposal seeks greater gross savings and aims to use over 15% of current income for investments. The level of debt stands at 31.2% and the average time for payment of providers is around 21.7 days, below the limits set out by law.
