The State Budget proposal for 2026 (OE2026) once again places the Algarve among the regions with the lowest intermunicipal funding in the country, with an allocation of 258,513 euros for the Algarve Intermunicipal Community (AMAL).
The proposed value for 2026 is similar to the previous budget and places the Algarve in the group of four CIMs with the lowest national funding. Slightly above are Alentejo Litoral (264,521 euros), Oeste (288,032 euros) and Alto Tâmega (313,020 euros).
This maintenance of the budget confirms a trend of underfunding in the southern regions, in contrast to the amounts allocated to communities in the interior and north, such as Tâmega e Sousa (745,971 euros), Beiras and Serra da Estrela (680,998 euros) and Douro (643,888 euros), which continue to lead transfers.
Despite population growth and the economic importance of the region, particularly through tourism and exports, financing remains well below that of the central and northern regions of the country.
The difference is justified by the distribution criteria based on population and territorial factors, but Algarve authorities have been warning of the need for a financing model more adjusted to the specificities of the Algarve, such as strong seasonality, pressure on infrastructure and challenges in housing and mobility.
The Government predicts, in the OE2026 macroeconomic scenario, GDP growth of 2% in 2025 and 2.3% in 2026.
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