Finance Minister Presents Budget Proposal to Parliament
In a significant development for the autonomous regions of Portugal, Finance Minister has submitted the proposed Portuguese State Budget for 2025 to the Assembly of the Republic. The proposal indicates that funding for Madeira is set to decrease, raising concerns among local officials and citizens about the potential impact on regional services and development.
According to the State Budget proposal delivered to Parliament on Thursday, the Autonomous Region of Madeira will receive 279.8 million euros in 2025 under the Regional Finance Law, 25.1 million euros less than in 2024.
Madeira's Funding Cuts While Azores See Increases
The budget proposal outlines that total transfers to the autonomous regions under the Regional Finance Law (LFR) will amount to €599 million. Of this, €279.8 million is set to be assigned to Madeira, reflecting a decrease of 8.2%, which equates to €25.1 million less than the €304.9 million allocated for Madeira in 2024.
In contrast, the Azores are set to receive a slight increase of 1.3%, with funding projected at €319.3 million. The disparity in financial allocations has raised eyebrows, prompting discussions on the fairness and implications of these budgetary decisions.
Year-by-Year Budget Overview of Madeira and the Azores
In 2023, the Azores received €62.4 million more than Madeira, in 2024 it was only €10.2 million more, in 2025 it is proposed to be €39.5 million more.
Azores
2023: €288,9 million
2024: €315,1 million
2025: €319,3 million (proposed)
Madeira
2023: €226,5 million
2024: €304,9 million
2025: €279,8 million (proposed)
Local Leaders Respond to Budget Cuts
Local political leaders have expressed their discontent regarding the proposed budget cuts. President Miguel Albuquerque described the funding reductions as a "bucket of cold water" for the region. He emphasized the importance of adequate funding for regional development and hinted at uncertainty regarding whether the Madeira government would support the budget in its current form.
Lawmakers to Vote on Controversial Budget Proposal on October 31
The cut in funding raises questions about how the local government will navigate these financial constraints, particularly in light of ongoing economic challenges. The initial vote on the budget proposal is scheduled for October 31, where lawmakers will discuss its merits and potential implications for regional governance. The proposed cuts and the reactions they have elicited underscore the ongoing complexities and challenges of balancing national priorities with the needs of autonomous regions in Portugal.
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