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São Miguel council opposes 2027 Azores budget draft

Azores GuideAzores Guide
October 22, 2026
2 min read

The island body says São Miguel's investment share does not reflect its population or economic weight and seeks changes before the final proposal reaches parliament.

The Conselho de Ilha de São Miguel has unanimously issued a conditional unfavourable opinion on the draft Azores Regional Annual Plan and Budget for 2027, saying it does not sufficiently address the island's priorities or reflect its demographic and economic weight.

The Council said it could revise its position if priority recommendations are included in the final proposal sent to the Azores Legislative Assembly. It said São Miguel has 56.5% of the region's population but receives 37.7% of public investment broken down by island.

According to the Council, planned investment amounts to 2,739 euros per inhabitant on São Miguel, or 1,855 euros when certain items are excluded, 67% of the comparable regional average. It said 49.1 million euros, or 13% of the island total, is for the SCUT road concession payment rather than new investment.

The Council described the proposal as a transition plan with less room for new investment and the first post-PRR plan. It warned that Chapter 50 funding falls 35.1%, from 1,001.9 million euros to 650 million euros, while EU transfers fall from 550 million euros to 250 million euros.

Its concerns include the Hospital do Divino Espírito Santo, for which the plan provides three million euros to launch the works tender in 2027 but no multiannual programming or financing agreement with the State. The Council requested a public financing plan, an execution timetable and the elimination of mixed wards by June 2027. It also said the plan contains no funds for the Route Development Fund and identified gaps concerning the new commercial port of Ponta Delgada, road links in Nordeste and Povoação, and the maritime link between São Miguel and Santa Maria.

The Council nevertheless recognised planned investment in education, housing, health, roads and coastal protection, including 18.2 million euros for housing, 13.5 million euros for the Variante às Capelas, and coastal protection at Santa Iria and Calhetas. It has requested hearings with parliamentary groups on 29 October and said it will publicly assess progress at each ordinary meeting.

The draft plan provides for total investment of 1.057 billion euros, including 650 million euros under the Regional Government's direct responsibility. The Regional Legislative Assembly in Horta, on Faial, is due to discuss and vote on the plan and budget in November.

This site previously reported that the Azores will introduce hospital management contracts in 2027.

Update — 2026-10-22

None of the 15 projects in Sao Miguel's programme is fully covered in the 2027 plan. Ten are only partially covered, four have no identifiable action or funding, and one falls under the responsibility of the Portuguese state.

The Council would reconsider its stance if five of its nine recommendations are accepted in the version sent to the Legislative Assembly. The recommendations include formally adding the Domingos Rebelo school rebuilding/construction project, the school absenteeism plan and the Sao Miguel Qualification Pact. They also include attaching multiannual programming for priority 1 and priority 2 projects, with six-monthly reporting to the Island Council.

Sources

Azores Guide

Azores Guide

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