Future Finance Act of the Autonomous Regions should guarantee annual increase of €250 million for the Azores, emphasises Duarte Freitas - Communication

Secretaria Regional das Finanças, Planeamento e Administração Pública

The Regional Secretary for Finance, Planning and Public Administration spoke today during a parliamentary debate on the proposed Plan and Budget for 2026, pointing out that the revision of the Finance Act of the Autonomous Regions should be based on a "clear basis for negotiation," starting with an annual increase of €250 million for the Azores.

"We understand that this review must be based on clear negotiations: the Region must ensure a minimum increase of €250 million per year, guaranteeing the necessary means for sustained, stable and predictable development, considering the provisions included in the 2026 State Budget, on account of additional transfers," he stressed. 

The government official spoke in Horta on the first day of debate on next year's budget documents.

Duarte Freitas announced that, in 2025, the Azores will exceed €6 billion in GDP, already taking into account the new statistical series for 2021.

He continued: “Between 2019 and 2026, our nominal GDP will grow by 47.2%, with a consistent convergence of GDP per capita compared to the average for Portugal and the European Union. And between 2019 and 2026, corporate income tax revenue, even with the reduction in rates in the Azores, will grow from €44.7 million to €77 million, representing an increase of over 70%. This evidences the soundness of our economic fabric and the strength of our economy."

The Regional Secretary acknowledged that the budget documents under analysis have, "as a priority, as regards the Autonomous Region of the Azores, the national and European goal of completing the implementation of the Recovery and Resilience Plan (RRP), while also "ensuring compliance with the n+3 rule of Azores 2030, i.e. implement €192 million of this programme in 2026."

"These two tasks, though daunting, do not distract us from maintaining the achievements of this Government, such as the tax differential, the “Azores Fare,” COMPAMID, or the supplements to family allowances and pension supplements," he assured. 

However, with strategic consistency requiring us "to keep our choices and not spread our resources too thinly, these documents seek to address two of the Azoreans' biggest concerns: health and housing."

"In health, after recovering debts in arrears since 2012, we want to keep regional suppliers with payments between sixty and ninety days, something that has not happened for many years. With this in mind, after updating salaries and careers and integrating occupational and COVID work programmes, we are undertaking a further effort to curb under-budgeting in the sector, with a €44 million increase in the health budget. Overall, from 2019 to 2026, Health will see its budget grow by €186 million, not to mention the conversion of commercial debt into financial debt. In housing, from 2025 to 2026, we will see a growth of €26.5 million and, compared to 2019, we will see a growth of €52 million, from €13.7 million to €65.7 million.

Duarte Freitas also took the opportunity during his speech at the plenary session to announce that, "in addition to the RRP, we will propose and negotiate an increase in funding for housing in the reprogramming of Azores 2030."

He continued: "When many doubted that we would meet the 2020 target, we achieved 101% implementation. When many questioned the implementation of the RRP in the Region, the Minister of Cohesion, now Minister of Economy, congratulated us for being an example to the country. And when the usual doomsayers announced that the Region would lose €117 million in centrally managed RRP funds, we found that, as of today, the Azores already have €169 million approved from national notices alone. When many doubted that the n+3 rule of Azores 2030 would be met, I can announce here today that, to date, we have already met the 2025 target, with an implementation exceeding €154 million. We are the territorial operational programme with the best implementation of funds in the country. Therefore, our confidence is based on hard facts and not on doomsayers, who are always contradicted by reality.

Some of the tasks listed by Duarte Freitas for 2026 also include the privatisation process of Azores Airlines and SATA Handling, the divestment of Segma and Globaleda, the sale of the three golf courses owned by the Region, and the political decisions regarding the "six regional entities that were the subject of a technical study by Deloitte with a view to their sale, dissolution, transfer or integration, either in whole or in part."

"We will move forward with procedures to enhance, recover and make available Sinaga's assets in Ponta Delgada and Lagoa, following public debate and technical approaches contracted with the Azores Delegation of the Portuguese Architects' Association," he pointed out.

With the dissolution of SDEA and Azorina, the restructuring and concession of Santa Catarina, the sale of Naval Canal and the hotels on Graciosa and Flores, and with these tasks ahead of us in 2026, the Government, as Duarte Freitas stated, intends to take another step in optimising regional public assets, which will also include the sale of unused properties and a review of actual rental needs."

He concluded: "We will never be satisfied. There is much to be done, corrected, completed or improved. But one also wonders: is there reason for satisfaction?
In any economic area, these indicators would be a source of pride. Here in the Azores, they should be too. They exist because of entrepreneurs, families and all Azoreans. But they also exist because there is a Government that brings more, stimulates, liberates and encourages the best that the Azores have to offer. And we want to continue like this."

Related press release: Speech by the Regional Secretary for Finance, Planning and Public Administration