Last year’s budget executed to a high degree
Barcelona City Council closed out the 2023 financial year with its main economic goals achieved, maintaining a high degree of budget execution at 92.2%, as well as a budget surplus for the first time since the pandemic. Specifically, the excess income compared to expenditure was 51.2 million euros, after closing out the last three years with a deficit caused by the extra municipal efforts to tackle the effects of Covid-19.
The level of budget execution reached 92.2% (in chapters 1 to 7), with a current expenditure execution of 95.5%, equating to 2,213 million euros, and investment execution of 78.5%, equating to 584 million euros. The gross budget saving (difference between revenue and current expenditure) remained stable, standing at 534 million euros at the close of 2023, and 16.2%, within the recommended range of between 15 and 20%.
Debt also remains stable at 1,012.9 million euros, and represents 30.7% of all current revenue, in line with the initial budgetary forecast and well below the limit set by the law on local tax systems. The treasury carryover, the liquid funds the City Council has to handle payments, stood at 5.7% of current revenue, above the figure of 5% that the City Council sets.
Payments to providers were maintained throughout the year at an average of around 21.7 days from the point that invoices were entered on the municipal register, well below the 30 days stipulated by law.
Solvent economic management
The agencies Standard & Poor’s and Fitch maintain the highest possible rating for the city (both give an A rating), bearing in mind this is limited by the rating that the state attains. Both agencies coincide in observing that if they could rate the City Council independently from the Spanish state, the rating for municipal economic management would be even better.
In terms of improving financial transparency, a synthetic report with a graphic format will shortly be published, designed to make the information more understandable for the general public, with the main economic, financial and budgetary indicators. This accurate but accessible report will be published annually and can be verified with the open data sources on the website for the Finances and Open Budget Strategy.