The leader of the Azores regional government (PSD/CDS-PP/PPM) expressed confidence in the region’s economic trajectory during a ceremony at the Portuguese Institute of the Sea and the Atmosphere in Ponta Delgada. He stated, “I am not worried because the work we are doing is to strengthen our economy. The budget is a tool for our development and not an end in itself.”
The public administration of the Azores reported a consolidated gross debt of 3,292.1 million euros at the close of 2024, posting a national account deficit of 184.8 million euros, according to recently disclosed figures.
Having led the Regional Government since 2020, José Manuel Bolieiro attributed the 2024 deficit to the execution of the Recovery and Resilience Plan (PRR) and the conversion of commercial debt into financial debt.
“Indeed, there is this increase with adjustments, some from the PRR and others from active debt management, such as converting commercial debt into financial debt. This is an undeniable fact,” he noted.
In response to questions about the Azores operating counter to the national trend of a budget surplus, Bolieiro advocated for revising the Regional Finance Law.
“Being counter-cyclical to the country is painful. But do you know why? Because there have always been downward revisions of the Autonomous Regions Finance Law. We are working towards a fair revision,” he emphasized.
The Azorean government highlighted the conversion of 75 million euros of commercial debt into financial debt in 2024, a practice they plan to continue throughout the year as it “costs less to the public treasury.”
“Let no one have the impression that we are increasing debt. This debt is pre-existing. We are transforming it more transparently and honestly into financial debt, which may even reduce costs for the public treasury,” he insisted.
José Manuel Bolieiro also referred to the legacy left by the Socialist Party (PS), which governed the region from 1996 to 2020.
“The level of indebtedness inherited, both financial and commercial debt, specifically the health sector burden or the impact of SATA, poses challenges,” he emphasized.
Regarding the increase in public debt, the Azorean government’s president highlighted the debt’s weight relative to the region’s Gross Domestic Product (GDP).
“I am pleased to note that we are continually reducing the debt’s proportion to our GDP. It is at 57.7%, below the 60% mark, the lowest in the country,” he observed.
According to the Regional Statistical Service (SREA), the Azores public administration deficit worsened in 2024 compared to the previous year, resulting “primarily from a worsening of the public account balance of the Regional Government and adjustments related to the PRR.”
The gross debt of the Azorean public administration, excluding commercial debt, municipal debt, and the debt of public companies not included in the public administration sector, stood at 3,292.1 million euros (preliminary figure) by the end of 2024.
