In southern Gran Canaria, the city council that governs the tourist jewel of Maspalomas has, almost silently, become one of the archipelago's healthiest municipalities. But what might seem like a straightforward fiscal success story also hides underlying tensions: the pressure of current spending, late payments to suppliers, and an economic model overly tied to tourism.
With a budget exceeding €100 million annually and a level of execution that has improved significantly over the last two years, San Bartolomé de Tirajana has done its homework. The latest audit by the Canary Islands Municipal Financing Fund certifies a net saving of 15,2% (when only 6% is required), revenue collection exceeding 91%, and a treasury surplus three times the legal minimum.
“In technical terms, it's one of the most solvent municipalities in the Canary Islands,” explains a tax economist who has closely followed the evolution of the local accounts. “It has no financial debt, it collects well, has fiscal leeway and room for maneuver. But it's also beginning to show signs of fatigue in its daily spending.”
And the financial muscle is being tested to the limit. In 2023, the city council drew on surpluses worth 74 million to cover additional expenses, generating a budget deficit that, although legal (due to the suspension of fiscal rules), is still a wake-up call. At the same time, payments to suppliers are delayed by more than 160 days, despite efforts to reduce this average.
"The municipality has gone from having money sitting idle to having to rush to use it," acknowledges sources within the economic department. In fact, between 2023 and 2024, nearly €250 million has been mobilized, an unprecedented figure in the recent history of Maspalomas.
One of the factors putting the system under the greatest strain is current expenditure. Between staff, cleaning, lighting, and service contracts, the city council spends more than 80% of its budget just on keeping its machinery running. In 2024, for example, it allocated 5,6 million euros exclusively for urban waste collection. All of this occurs in a context of a growing population, sprawling urban development, and growing demands from a demanding citizenry.
The real dilemma looming on the horizon is the structural dependence on tourism. San Bartolomé de Tirajana collects a large portion of its revenue through taxes and fees directly linked to tourism activity. If the cycle changes—due to a recession, airline disruptions, or changing habits—its revenue collection capacity will suffer.
For this reason, some experts are already pointing to the need to diversify the fiscal structure and prepare a prudential strategy for the coming years. "Sustainability isn't just about having a surplus today; it's about having room for growth tomorrow without cutting services," summarizes one expert who worked to reach this conclusion using data from the Independent Authority for Fiscal Responsibility (AIReF).
With the new 2025-2027 Investment Plan on the horizon, the local government is playing for more than just the balance of its accounts. Its resilience as an administration is at stake in a volatile environment, with growing social pressure and a local economy as vibrant as it is fragile. Because behind the numbers—currently in the green—lies a tension that isn't reflected in official reports: that of a municipality that wants to be a big city, but still navigates with the structure of a shantytown.
