The 2027-29 Medium-Term Budgetary Plan (PPMP) of the Government of the Canary Islands, approved on April 24, anticipates a reduction in investments (chapters 6 and 7) of almost 700 million euros for next year's accounts. This multi-year plan foresees reducing total non-financial expenditure by 309 million euros in 2027. However, while current spending will increase by 375 million (3.5%), capital operations will decrease by 684 million (32.4%). In parallel, the personnel chapter will increase by 412 million (8.1%), despite a general cut of 2.5% compared to the initial 2026 budget.
This plan marks a change in trend, as since 2021, previous budgetary plans had always projected growth in non-financial expenditure for the following year (n+1). The 2027-29 PPMP, in contrast, anticipates a contraction of non-financial expenditure by 2.5% (309.1 million) compared to the initial 2026 budget.
The President of the Canary Islands, Fernando Clavijo, explained that the 684 million euro reduction in investments is due to the end of European Next Generation funds and their Recovery and Resilience Mechanism (MRR) at the end of August 2026. However, the text notes that insufficient own funds are being allocated to compensate for this drop.
The document also acknowledges, as did the Economic and Financial Plan (PEF) before the Independent Authority for Fiscal Responsibility (AIReF), that the spending rule would be breached in 2025. The Ministry of Finance recently confirmed this breach, previously acknowledged for 2024. The recognized excess computable spending would be 158.9 million in 2025, exceeding the authorized rate of 3.2%.
AIReF, in its Report 29/26, raised the increase in computable spending for 2025 to 8%, well above the permitted limit. Finally, the Ministry of Finance set this increase at 9.1% (566 million euros), which will oblige the Government of Fernando Clavijo to prepare a second Adjustment Plan to cut this excess spending in the budgets for 2026 and 2027.
