Madeira's Regional Public Administration Closes 2025 with 106.7 Million Euro Surplus

The Regional Public Administration of Madeira concluded the fiscal year 2025 with a consolidated surplus of 106.7 million euros. This financial outcome, though positive, marks a decline from the 134.7 million euros surplus achieved in 2024, according to the December Budget Execution Bulletin released recently.

The financial performance reflects varied contributions from the different subsectors within the Regional Public Administration. The Government of Madeira recorded a surplus of 134.3 million euros, which is an improvement of 25.9 million euros compared to the previous year.

Conversely, the Autonomous Services and Funds, encompassing the Reclassified Public Entities, reported a negative balance of 27.6 million euros. This deficit was exacerbated by a 46.5 million euro shortfall from the Reclassified Public Entities, indicating a 63.1 million euro deterioration compared to 2024.

The Government of Madeira's actual revenue increased by 3.0% year-on-year, amounting to 52.7 million euros. This growth was mainly driven by a 24.3% rise in current transfers, including a 50 million euro allocation under Article 152 of the State Budget for 2025.

However, tax revenue saw a slight contraction of 0.05%, with corporate tax (IRC) and value-added tax (IVA) decreasing by 7.3% and 4.1%, respectively. This decline was partially offset by an 8.7% increase in personal income tax (IRS).

In terms of expenditure, the Government's effective spending rose by 1.6% year-on-year, totaling 26.8 million euros, achieving an execution rate of 82.1%. This increase was primarily due to enhanced funding for the health sector.

For Madeira residents and tourists, understanding these financial intricacies is crucial as they impact regional services and infrastructure, which are vital for both daily life and tourism activities.

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