The general account for Orihuela Town Council reflects a budget execution rate of 57.39%. Through its 2025 budgets and subsequent modifications, the local administration had a total amount of 214.5 million euro available, of which 123 million reached obligations, leaving credit remnants—unspent money—totalling 91.4 million euro.
The treasury of the local entity holds 107 million euro, down from 132 million in 2024, to meet its pending payment obligations in the short term. It maintains a surplus for general expenses of 49.9 million euro, compared to 57.8 million in the previous year, pointing to financial solvency but also difficulties in executing committed projects and annual budgets. A clear gap exists between paper and reality.
These details emerge from the accounting document outlining the asset situation, budget execution, and economic results of the Orihuela council, which is currently undergoing public exposure as part of its accountability obligations.
Real investments stand out with a definitive balance of 71.6 million euro and an execution of 13.9 million euro, representing 19.4% and leaving a credit remnant of 57.6 million euro. The internal audit report highlights an under-execution of the budget, particularly in investments, complicating efforts to control investment trajectories and demonstrating low execution of budget modifications. A habitual practice sees continuous and significant budget modifications that ultimately end as unspent credit remnants.
A significant degree of under-execution also affects budgeted spending. Data regarding the cost of public services provided by the town council during 2025 shows that 47.37% of services experienced an execution rate lower than 50% of their definitive credit.
Social services and social promotion achieved 73.7% of executed spending, and general character services reached 70%. In contrast, policies regarding agriculture, fishing and livestock, industry and energy, and housing and urbanism recorded execution rates of 15%, 25%, and 25% respectively, according to the cost and performance memory of services, where the audit department recommends greater control by managing bodies over their competence projects.
Surplus and loan
The budgetary result shows a surplus of 14.7 million euro, lower than the 18.77 million euro recorded at the close of 2024, serving as an initial indicator of local short-term financial solvency. This surplus enabled the amortisation of 18.7 million euro of debt concerning the 41.4 million euro investment loan granted in 2024, carrying an interest cost of 1.2 million euro last year after 19.4 million euro was amortised.
Total indebtedness stands at 29.8 million euro, meaning each resident owes 659 euro. Spending per inhabitant reaches 1,522 euro, and investment per inhabitant stands at 177 euro.
Taxes and fees
The controversial waste collection fee, which tripled to 202 euro annually, is reflected in the budget liquidation. Municipal coffers collected 16.5 million euro in 2025, forming an important share of total fee-based income, which totals 22.2 million euro compared to 10.1 million euro in 2024.
The audit department stresses that compared to the budget execution state, the coverage of service costs through fees fails to finance the services fully, with general resources funding the majority.
Meanwhile, property tax collection reached 25 million euro, about 220,000 euro less than projected, while the tax on constructions, installations, and works brought in 2.3 million euro, falling 4.7 million euro short of the budgeted amount. The ruling coalition planned to update both taxes during the current term, prompting the audit office to recommend a review of main fiscal ordinances, especially for construction taxes.
Total tax collection reached 46.3 million euro compared to 44.5 million euro the previous year, figures that rise to 67.8 million euro and 54.6 million euro, respectively, when including tax and urbanistic revenues. Tax collection increased not due to improved efficiency but through heightened fiscal pressure on neighbours, which failed to improve public services or citizen care, instead funding rising personnel and management expenses while a considerable share of increased revenue remained unexecuted.
Staffing
Personnel expenses reached 40 million euro, two million euro more than in 2024, representing 32.54% of total spending for 2025. The audit department points to an insufficient provision of qualified personnel for municipal activity, particularly within its own department for internal and financial control functions, noting the convenience of a permanent structure to ensure process stability. Currently, nearly 45% of staff operate under service commissions or interim appointments, a situation communicated multiple times to the human resources and treasury departments, as well as to ensure the legal separation of accounting and financial management functions.
The council approved a job position relation list in December without filling all positions, meaning urgent development is required so economic, treasury, and tax management areas receive adequate staff.
Anomalies
The audit report highlights 31 million euro in doubtful collection balances and pending budgetary imputation expenses, mainly unapproved invoices from closed exercises valued at 4.6 million euro, alongside another 2.5 million euro in pending payments where liquid fund outflows lack a known origin at the time of payment to justify accounting. The report terms this an anomaly and recommends initiating a balance clearance and regularisation file.
Additionally, the town council lacks an analytical accounting system to identify every public service cost and compare it against performance outcomes.
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