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Date Published: 17/03/2025

Orihuela Costa residents demand fair funding as €15 million shortfall persists

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Coastal area contributes significantly more to municipal revenue than it receives in services

Orihuela Costa residents demand fair funding as €15 million shortfall persists

Orihuela Costa continues to contribute far more to the municipal budget than it gets back in public services and infrastructure, according to an analysis by the residents' association Unidos por la Costa. The figures reveal a financial imbalance of around €15 million per year, with locals calling for a fairer distribution of funds – and even considering segregation from Orihuela as a possible solution.

The coastal area generates €53.3 million, representing 45.6% of the total municipal income of €117 million, yet only receives €38 million in expenditure, which is just 33% of the total budget. If tax revenue alone is considered, the coast contributes an even higher percentage: €13 million of the municipality’s total €21 million in tax income—a staggering 63% share.

This ongoing financial gap has led to noticeable deficiencies in essential services such as education, social welfare, sports and local festivities. According to Unidos por la Costa, this €15 million shortfall should be used each year to address the long-standing infrastructure problems and bring funding levels in line with contributions.

Investment in 2024 and growing calls for independence

The 2024 budget, which will be incorporated into the 2025 municipal spending plan, allocates €12.6 million for Orihuela Costa. While this represents 30.7% of the total €41 million investment for the municipality, residents argue it is far from enough to close the historical gap in infrastructure spending.

Frustration over underfunding has fuelled increasing calls for segregation from Orihuela. In the last municipal elections, a pro-independence party (PIOC) received strong support from coast residents who voted. Unidos por la Costa insists that, financially, the coast has the resources to sustain an independent or decentralised administration.

However, they question whether Orihuela itself could cope without the coast’s financial contributions. The town’s budget has been propped up for years by revenue from Orihuela Costa, yet many districts still suffer from neglect and a lack of investment.

Meanwhile, Orihuela Costa's population continues to grow, in contrast to the declining population in Orihuela city. This trend, along with the underreported number of actual residents versus those officially registered, means the financial imbalance could worsen unless significant changes are made.

Unidos por la Costa argues that the current budget strategy is not based on objective needs and calls for a decentralised local government structure, managed by officials based in Orihuela Costa who understand the area’s priorities. They stress that taxpayers should see a return on the high contributions they make, rather than being left with inadequate services year after year.

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Image: energepic/pexels

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