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Date Published: 01/04/2025

Investment in public work shoots up in Murcia, but debt keeps climbing

Building projects and civil improvements have tripled in the last year, but Murcia’s debt level now stands at almost a third of its GDP

Public works investment in the Region of Murcia has soared at the start of 2025, tripling compared to the same period in 2024. The Region has already received €134.9 million in the first two months of the year, making it the third-fastest growing autonomous community in Spain, after Castilla y León and the Canary Islands.

According to data from the Association of Construction Companies and Infrastructure Concessionaires (Seopan), this marks a significant increase from the €44 million received by Murcia in early 2024. Nationally, public works investment has risen by 58%.

The increase is largely due to the central government, which allocated €95 million to Murcia between January and February, quadrupling its previous investment. The regional government also raised its spending to €18 million, three times higher than the €6 million spent in early 2024. Local councils contributed €20 million, reflecting a 50% increase. Most of the investment has gone into civil works (€91 million), while building projects received €43 million.

Despite this boost in public spending, Murcia’s debt has reached a record high. By the end of 2024, the regional government owed €13.5 billion – 31.5% of its GDP. This continues a 17-year trend of rising debt, which has multiplied 16 times since 2008, when it stood at just €755 million.

The debt increase means each resident would need to pay around €8,600 to clear it. Although the debt had briefly fallen in mid-2024, it surged again in the final quarter, pushing Murcia’s debt level above that of any other Spanish region.

The Spanish government has proposed writing off 26% of Murcia’s debt as part of a broader national plan to cancel €83.2 billion in regional liabilities. However, Murcia’s government has rejected the offer, calling it insufficient and unfair. The regional administration argues that Murcia is underfunded compared to other autonomous communities, while opposition parties blame the local government’s financial mismanagement.

Image: CARM

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