The Regional Government of the Azores’s accounts closed 2024 with a deficit of 117.5 million euros, an increase of 31 million euros compared to 2023. The figures are contained in the Budget Execution Bulletin for last December, a document produced by the Regional Secretariat for Finance, Planning, and Public Administration.

According to the latest bulletin for 2024, the Regional Government of the Azores collected 1.45 billion euros in actual revenue, 8.81% more than the previous year (117.8 million euros). The major contribution came from tax revenue (855 million euros) and indirect taxes (580 million euros).

Regarding actual expenditure, the Regional Government of the Azores increased it by 10.43% (148 million euros), ending the year with an unpaid ‘bill’ of 1.57 billion euros.

At 1.21 billion euros, current expenditure is the main “contributor,” having increased by 13.03% (167 million euros) compared to 2023. Under this heading, Current Transfers have the “lion’s share”: 861 million euros, 14.27% more (107 million euros) than in the previous year.

In terms of increases, transfers to Public Administration almost doubled (87.89%), from 423 million euros in 2023 to 796 million euros in 2024.

In terms of the overall balance, i.e., between what was earned (Actual Revenue) and what was spent (Actual Expenditure), the Regional Government of the Azores ended 2024 with a deficit of 117.5 million euros, an increase of 35.31% compared to 2023, when the difference was only 86.8 million euros.

This is a reversal compared to the 2022/2023 scenario when the regional executive’s accounts went from a deficit of 146.2 million euros to 86.8 million euros.

IABA and ISP with the biggest increases

While direct taxes (275 million euros) fell by 2.94% (around 8.3 million euros) compared to 2023, indirect taxes grew by 15% (74 million euros) over the same period.

Looking in detail at the tax revenue collected in 2024, the IABA (tax on alcoholic beverages) and the ISP (tax on petroleum products) were the indirect taxes that grew the most, both by around 27%, with the IABA contributing 9 million euros and the ISP 62 million euros.

VAT is responsible for 69.9% of the indirect taxes collected (405 million euros), an increase of 14.36% compared to 2023.

Nuno Martins Neves is a journalist for Açoriano Oriental-Paula Gouveia, director

Translated to English as a community outreach program from the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL) as part of Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno, PBBI thanks Luso Financial for sponsoring NOVIDADES.