Introduction
The 2025 budget of Andorra reflects the country’s financial priorities and strategies for this crucial year. Understanding the economic framework and budget allocations is essential for those wishing to live, work, or invest in Andorra. This analysis reveals how public resources are distributed to ensure an efficient and competitive system.
Legal Framework and Budget Objectives
The 2025 budget of Andorra is based on the Constitution of 1993, the General Law of Public Finances, and the Financial Sustainability Law. This annual law sets the maximum obligations and anticipated rights during the fiscal year, ensuring fiscal stability in line with the Government’s strategic objectives.
Main Responsibilities
- Determine revenue forecasts and the maximum obligation allocations for the General Administration and related entities.
- Regulate the rules and criteria for executing the budget, including revenues, expenditures, and economic policy.
- Include permanent modifications affecting public finances and the public function to maintain regulatory coherence.
Main Chapters and Contents
Credits and Modifications
The first chapter defines the scope of the state budget, covering the General Administration, parapublic entities, and related public companies. It specifies rules for modifying and expanding credits to ensure budget flexibility.
Budget Management and Public Spending
This segment addresses administrative aspects for public contracting, compensation, and personnel hiring, along with compliance with efficiency, equality, and competitiveness criteria in public expenditure management.
Financial Operations
Includes regulation of legal interests, authorized debt regime, revaluation of social benefits, and the level of international reserves, which are crucial for the country’s financial stability.
Highlighted Budget Distribution for 2025
The allocated amounts for 2025 reflect investments in key areas for the development and quality of life in Andorra.
Total Budget and Funding
The General Administration has an ordinary expense budget of approximately 668.6 million euros, primarily funded by expected revenues, borrowing operations, and previous year surpluses.
Allocation to Parapublic and Public Entities
- Caixa Andorrana de Seguretat Social (CASS): A balanced budget close to 462 million euros to guarantee social security obligations.
- Servei Andorrà d’Atenció Sanitària (SAAS): Allocates more than 113 million euros for public health services, including personnel and technologies.
- Forces Elèctriques d’Andorra (FEDA): Budget of over 151 million euros, whether for operations or infrastructure investments.
- University of Andorra: Over 5.6 million euros for current expenditure and educational services, consolidating local educational quality (more details here).
- National Housing Institute (INH): Over 1.3 million euros allocated to promote access to affordable housing and its maintenance.
Investments and Multi-year Projects
The budget involves strategic investments and long-term projects, such as:
- Public transportation services, including concession and modernization with significant investment over 10-15 years.
- Waste management and environmental sustainability projects supporting circular economy and sanitation initiatives.
- Technological innovation and digitalization, which drive business and administrative transformation in the country (related information).
- Innovative housing projects like “tiny houses” to increase affordable housing supply.
Importance for Those Wishing to Establish Residency in Andorra
The 2025 annual budget is key to understanding Andorra’s economic and administrative dynamics. For those planning a move or investment in this country, knowing the allocations for the healthcare system, housing, and social welfare is essential.
Support for social security, quality public services, and infrastructure investments ensure a stable and attractive environment for residents and entrepreneurs.
For more detailed information on residency and tax aspects, visit our sections on residency in Andorra and taxes in Andorra.
Conclusion
Ultimately, Andorra’s 2025 budget demonstrates a strong commitment from the Government to sustainable development, innovation, and quality of life. For those planning to move to Andorra, this information provides a clear overview of the available resources and facilities.
Planning a relocation to Andorra requires considering these economic and social factors that ensure positive integration and tangible benefits.