The budget of the Autonomous Region of the Azores for the next year, which began to be debated at the Parliament today, estimates a total expenditure of 1,427.1 billion Euros. 
 
From this total, 605.9 million Euros (42.8%) correspond to operation expenses, 518.8 million Euros (36.5%) to the costs of the plan and 294.3 million Euros (20.8%) to extra-budgetary operations. 

Regarding the operation expenditure, nearly 604.1 million Euros (99.7%) were allocated to current expenditure, while capital expenditure only reaches 1.8 million Euros (0.1%). 
 
In turn, the current expenditure mainly includes personnel costs (22.6% of the total expenditure) and transfers (17.2%), the first corresponding to 320.4 million Euros and the latter to 243.5 million Euros.

The expenses concerning the personnel of the autonomous funds and services are included in the transfer expenses, particularly the ones related to the services integrated in the Regional Health Service as well as the appropriations to ensure the payment of the regional complementary pension.

Current expenditure for next year also includes a provision for other expenses in the amount of 12.5 million Euros, of which 11.5 million Euros will be allocated to the current financing of the Legislative Assembly, while 9.5 million Euros will be allocated to the payment of the debt.

Being Integrated in Chapter 40 of the Budget of the Azores, the expenditure of the Plan for 2010 estimates a 516.8 million Euro budget. 

In terms of functional classification, the global expenditure of the Region for next year will mainly focus on social functions with 667.7 million Euros (47.1%), on economic functions with 371.3 million Euros (26.2%) and on general sovereignty functions with 309.1 million Euros (21.8%).

In turn, the global revenue of the Region in 2010 is estimated in 1,427.1 billion Euros, which will correspond, after excluding the extra-budgetary operations and financial liabilities, to an actual revenue of 1,082.8 billion Euros.

The main financing sources of the Budget of the Region come from its own revenues, with 544.1 million Euros (50.2%), transfers from the State Budget, with 380.2 million Euros (35.1%) and transfers from the European Union, with 158.6 million Euros (14.6%).

With regard to the Region’s own revenues, more than 93% are taxation revenues (direct and indirect taxes), which should reach to 509.3 million Euros.

The Azores expects to collect nearly 187.7 million Euros in direct taxes, such as the income tax (152.2 million Euros) and the trade income tax (31.5 million).

In turn, indirect taxes are estimated at 316.7 million Euros, of which 285.5 million Euros are related to consumption taxes, especially the value added tax (186.5 million Euros), the tax on petroleum products (56.7 million Euros), the excise duty on tobacco (25.7 million Euros) and the excise duty on alcohol and alcoholic beverages (6.1 million Euros). With stamp duty and the unique circulation tax, the Region should raise collect 29.4 and 1.2 million Euros, respectively.

In the case of transfers from the State Budget, the largest “slice” - 298.7 million Euros – goes to the Azores on national solidarity. The remaining funds come from the Cohesion Fund (59.7 million), the adjustment of the “misunderstanding” regarding the previous Regional Finance Law (16.7 million Euros for 2010, an amount that is the result of a global adjustment of 90 million) and from the national contribution to the social housing programme (5.2 million Euros).

Estimated at 158.6 million Euros for next year, the financial transfers from the European Union represent a group of investment projects co-financed by EU funds, undertaken by the Government of Azores.

The proposed Budget also authorises the Government to take out loans, including bank credit, used exclusively for projects subsidised by Community funds, up to the amount of 50 million Euros.

Furthermore, the Budget stipulates that in 2010 the autonomous funds and services cannot take out loans that increase their level of net debt.

The decree that will approve the Budget of the Autonomous Region of the Azores for the coming year also stipulates 45 million as the maximum amount for the assurance of guarantees by the Region in 2010.