Six Azorean municipalities are among the top 100 in the global ranking of small municipalities, included in the Municipalities Financial Yearbook for 2024. Santa Cruz das Flores stands out in third place, with an overall rating of 1,573 points, based on various criteria, up from eighth position in 2023. The list also includes Santa Cruz da Graciosa (13th place), Velas (14th), Lajes das Flores (26th), Corvo (38th), and Calheta (49th).

The mayor of Santa Cruz das Flores, Elisabete Nóia, said yesterday that she wanted to maintain the “financial rigor” that led to this achievement. “We want to carry out works and investments, but always with care to maintain balanced accounts and financial rigor, so as not to mortgage future generations,” she told Lusa.

This ranking dedicated to small municipalities is led by Óbidos (Leiria), with 1,606 points, and Murtosa (Aveiro), with 1,583 points. The document points out that, overall, “only 86 municipalities (13 large, 27 medium-sized, and 46 small) achieved a level considered satisfactory in terms of financial effectiveness and efficiency, i.e., they achieved at least 50% of the total possible score.”

With a maximum score of 1,900 points, ten indicators were evaluated: liquidity index, ratio between EBITDA and operating income, weight of current liabilities in assets, liabilities per inhabitant, financial coverage ratio of expenditure incurred during the financial year, average payment term, degree of execution of the effective balance, total debt index 2021, surplus index, and direct taxes per capita. Angra do Heroísmo ranks fourth among Azorean municipalities with the greatest financial independence (own revenues relative to total revenues), at 37.4%, according to the Municipalities Financial Yearbook.

The document, prepared by the Accounting and Taxation Research Center of the Polytechnic Institute of Cávado and Ave, with the support of the Order of Certified Accountants and the Court of Auditors, places the municipality of Praia da Vitória in 11th place, with 25.5%.

The top three places in the region belong to Ponta Delgada (54.9%), Ribeira Grande (40.8%), and Lagoa (39.2%). Ponta Delgada has led the ranking since 2014, though it has fallen 2.4 percentage points from 2023.

Angra do Heroísmo, Ponta Delgada, and Ribeira Grande are considered medium-sized municipalities. Corvo emerges as the municipality in the archipelago and in the country with the least financial independence. Financial independence is achieved when one’s own revenues account for at least 50% of total revenues.

The document also notes that “of the fifteen municipalities in the Azores Region that showed an increase in revenue in 2024, six showed revenue growth of more than 10%, with the growth shown by the municipalities of Angra do Heroísmo (+29.3%), Lagoa (+23.6%), and Nordeste (+21.1%) being particularly noteworthy.”

According to the yearbook, only three of the 19 Azorean municipalities (Calheta, Velas, and Lajes do Pico) showed a decrease in revenue. The overall revenue of the Azorean municipalities rose by €22.3 million in 2024, an increase of almost 9%.

In Diário Insular-José Lourenço, director.

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