The Gijón City Council's Governing Board has approved a budget proposal for 2027, totalling €325,510,900, which represents a 5.01% increase compared to the previous year. This is the highest budget in the city's history and the fourth consecutive budget presented by the current administration.
The proposal will now be debated in the Finance Committee and, following a process of amendments, will be submitted to the municipal plenary session. The Mayor defended the consistency of presenting four budgets in four years as evidence of the administration's ability to agree on priorities and maintain them throughout the term. She stated that this approach provides a predictable framework for businesses and investors, allowing for multi-year planning and expenditure commitments without the limitations of extensions.
The Mayor described the budget as "realistic and responsible," highlighting its role in concluding the investment efforts of recent years, maintaining major city projects, and strengthening public services.
Housing as a municipal priority
The Councillor for Finance, María Mitre, pointed out that the most notable change in this budget is in Chapter Seven, which has increased by 54.38% to €9.3 million to incorporate two lines of aid. One of these will allocate €3.5 million to the first year of the second phase of the Key Plan, which subsidises the construction of affordable rental housing. The other will reserve €2 million for façade rehabilitation, fulfilling the City Council's commitment to address outstanding debts with communities. Mitre asserted that housing, "the main problem today in Spain," receives a direct response in the municipal accounts.
Rising income without tax increases
Income is also projected to rise by 5.01%, largely driven by the Tax on Constructions, Installations and Works (ICIO), which is expected to increase by €5.1 million. The Finance Department considers this tax one of the most reliable indicators of a city's growth, with the current increase supported by announced investments, including those in two hospital facilities.
Increased funding for municipal companies
The budget allocation for municipal companies and autonomous organisations stands at €114.2 million, with Chapter Four increasing by 7.26% compared to 2026. Contributions to all companies and organisations are set to rise, with significant increases for the Municipal Sports Board, EMA, EMTUSA, and Divertia.
Municipal investment totals €27.3 million
The total municipal investment is expected to reach €27.3 million. Notable allocations include €3.8 million for the 2027 instalment of the Vías Plan agreement with Adif and the Principality, which incorporates the unspent portion from 2026 due to delays in Adif's bidding for the new intermodal station; €2.8 million for the renovation of the Covadonga Hostel; and €6 million to continue the Tabacalera project, which has a total budget of €22 million. Other allocations include €1 million for fire extinguishing services, continuing the development of a new fire station, and €2 million for district budgets, which solidifies the 100% increase committed in 2025.
If approved, the City Council will have committed €40 million more in investment than during the entire previous term.
Investment potential of €131 million over three years
Between 2024 and 2026, total investment is projected to reach €131 million, averaging just over €40 million per year across 271 monitored projects. Of these, 163 are completed, 27 are underway, and 31 are in the bidding process. These figures do not include 2023, the year the current term began, or 2027, which is pending approval. As the Mayor highlighted, this budget concludes the term with the accounts in order, maintaining key features such as the north-south cultural axis, the east-west economic axis, and the transversal renewal and expansion of municipal services.
