Andorra will be allowed to spend up to €834.8 million in 2027
Current expenditure may increase by 10.8%, while the debt target has been set at 28.1% of GDP
The Government has set the spending limit for the general administration at €834.8 million for the 2027 financial year.
In addition, current expenditure, or operating expenditure, may increase by 10.8%, more than double the reference rate for nominal GDP growth, which stands at 4.8%.
The figures are included in an official notice published on Monday in the Official Gazette of the Principality of Andorra (BOPA), setting out the financial sustainability and budgetary and fiscal stability targets for the coming year.
The document, signed on 2 September, also establishes a debt target equivalent to 28.1% of gross domestic product.
These parameters must be taken into account when preparing and monitoring the general administration’s budget for 2027.
Current expenditure to grow faster than nominal GDP
The maximum increase of 10.8% established for operating expenditure exceeds the nominal GDP growth reference rate, which has been set at 4.8%.
Despite this difference, the official notice considers that the requirement established by the Public Finance Sustainability and Budgetary and Fiscal Stability Act has been met.
Compliance is justified through the alternative mechanism provided for in the legislation itself. This mechanism considers the proportion of actual investment expenditure within the total executed budget, excluding changes in financial assets and liabilities.
For 2027, this investment ratio is forecast to reach 10.6%, above the 6.9% average recorded in the general accounts for the five most recent financial years approved by the Government, from 2021 to 2025.
