City hall spent less than a fifth of its planned investment budget in 2025, despite closing the year with a €14.7 million surplus.
Orihuela City Council spent just 57.39% of its final 2025 budget, leaving €91.4 million unspent, according to its general accounts. The figures raise questions about the authority’s ability to turn approved spending plans into completed projects and services.
After budget amendments, the council had €214.5 million available. By the end of the year, it had recognised spending obligations of €123 million. The gap was particularly stark in the investment budget: of the €71.6 million available for projects, just €13.9 million was executed. That is an implementation rate of 19.4%, with €57.6 million left unspent.
The council’s own financial oversight report identifies under-execution, especially in investments, as a concern. It also points to the low implementation rate of budget amendments: additional spending is approved during the year but much of it remains on the books rather than being carried out.
The problem extends beyond major projects. According to the report on the cost and performance of municipal services, 47.37% of services spent less than half their final allocated budgets in 2025. Spending rates varied widely. Social Services and Social Promotion executed 73.7% of their budgets, and General Services 70%. Agriculture, fishing and livestock reached 15%, while industry and energy, and housing and urban planning, each reached 25%. The oversight office has urged departments to exercise closer control over the projects they manage.
Orihuela nevertheless ended the year with a €14.7 million budget surplus, down from €18.77 million in 2024. Its treasury position indicates that the council can meet short-term obligations, but the large balances also underline how much planned expenditure has yet to reach residents.
Revenue from the waste collection charge was €16.5 million in 2025, following the controversial increase in the annual charge to €202. Total fee revenue rose to €22.2 million, compared with €10.1 million the previous year. The oversight report cautions, however, that fee income does not cover the full cost of the services concerned, which still rely heavily on general funds.
Property tax brought in €25 million, around €220,000 below forecast. Revenue from the tax on construction, installations and works was €2.3 million, falling €4.7 million short of its budgeted figure. The oversight office recommends reviewing the council’s principal tax ordinances, particularly the construction tax rules.
Staff costs rose by €2 million to €40 million, accounting for 32.54% of total expenditure. Yet the oversight office says it still lacks enough suitably qualified personnel to carry out municipal work and effective financial checks. It warns that almost 45% of staff are working under secondments or temporary appointments and calls for urgent progress in filling posts under the job classification list approved in December.
The report also flags €31 million in receivables considered doubtful, €4.6 million in invoices from previous years awaiting approval, and a further €2.5 million in payments awaiting allocation to a budget heading. It describes the latter as an accounting anomaly and recommends reviewing and regularising the balances.
Orihuela’s accounts therefore present a mixed picture: the council has substantial financial resources and ended the year in surplus, but its low spending rates, particularly on investment, show a persistent failure to deliver much of what its budgets promise.
