A fresh start for some, and error correction for others. The Valencian Government has identified calculation errors in the Economic-Financial Plan (PEF) that Torrevieja City Council was obligated to submit after failing to adhere to the spending norm and resulting in a funding deficit. Consequently, the Directorate General of Local Administration has mandated that it develop a new document that delineates the precise actions that must be implemented to re-establish the expenditure trajectory.
In April, an extraordinary plenary session provisionally approved this plan, which pertains to the 2024 budget settlement. The PP and Vox members voted in favour, while the PSOE and Sueña Torrevieja members voted against it. This decision necessitated modifying the execution of investments in accordance with their spending capacity, restricting those that were financed with debt or cash surpluses to €28.6 million in 2025 and €24.2 million in 2026.
The fiscal regulations regarding budget balance and financial sustainability were deferred until 2023. The City Council had neglected to adhere to the expenditure and financing gap regulations subsequent to the 2024 budget settlement. Because of all of this, a PEF for the years 2025 and 2026 was developed. This plan must be submitted to the financial oversight authority of the Generalitat Valenciana for final approval and publication in the Official State Gazette (BOE).
On June 4th, the General Directorate of Local Administration—or the supervisory body—informed the City Council of discrepancies that necessitated clarification and additional documentation. For instance, the 2024 financial year settlement did not include an Audit Report that assessed the fiscal rules, and there were discrepancies between the calculation of the expenditure rule in the PEF and that of the Ministry of Finance’s Virtual Office of Local Entities.
The methodology for the 2025-2026 forecasts was also ambiguous, as the assumptions under which they were prepared did not appear to coincide with the revenue and expenditure forecasts provided, and they were also left unquantified.
Additionally, the agency stated that only three measurements were specified, and they were not adequately detailed or quantified, nor were the adjustments specified.
This is a reminder that the forecasts for the 2025 and 2026 financial years should be included, along with a description, quantification, and timeline, both with and without measures.
Lastly, the estimated net savings for both fiscal years and the treasury surplus for general expenses were requested.
A few days later, on the 16th of the same month, the City Council responded with a draft of a new PEF proposal that corrected the discrepancies. This proposal could be submitted for further plenary approval after being validated by the General Directorate, where the suggestions, proposals, and recommendations considered by the supervisory body would be incorporated.
Additionally, a 2025 budget report was included, which substantiated the revenue calculations and their disparities from the previous year. The report focused on the new urban solid refuse tax, which is expected to generate revenues of €14,742,944 in 2025, as opposed to the €5,813,720 assessed in 2024.
Without delving into the specifics
Nevertheless, the Councillor for Finance, Domingo Paredes, clarifies that this is a preliminary step at a technical level. The oversight body has identified some material calculation errors, which have been rectified, but it has not yet examined the specifics of the PEF or determined its validity.
David Villanueva, a PSOE councillor, contends that the Torrevieja government’s current policy of waste is “a significant setback,” as it has dissipated the surplus funds that were present in the municipal coffers when it assumed power. In April, he believes that “they approved a PEF that imposes virtually no real measures for returning to financial stability, and that’s why they’ll have to issue another one.”
Villanueva continues to assert that “they continue with their orgy of disproportionate spending,” stating that “laws must be complied with, or the courts will convict those who don’t for malfeasance.”
Author: Derek Appleton
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