Deliveries on account of the Treasury grow 11% to Catalonia and 10% to Madrid

The Ministry of Finance has delivered 11% more resources to the autonomous communities despite the tax cuts announced by almost all the autonomous communities for this year.

Thomas Osborne
Thomas Osborne
30 January 2023 Monday 11:02
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Deliveries on account of the Treasury grow 11% to Catalonia and 10% to Madrid

The Ministry of Finance has delivered 11% more resources to the autonomous communities despite the tax cuts announced by almost all the autonomous communities for this year. In total, the Government has delivered 10,280 million euros in January to the common regime communities under the regional financing system, so that in the year as a whole the amount will rise above 123,000 million.

It is a mechanism by which the State calculates what will be the collection of the regional income tax rate, 50% of VAT and the corresponding part of excise taxes in each community and sends an advance. After two years, these deliveries are regularized with the actual collection and more is delivered or resources are withdrawn from each community.

Catalonia is the autonomy that received the most money, as happened the previous year. Its endowment grows the same as the average, 11%, and stands at 1,938 million in the month of January. The figure for the increase in deliveries on account was in the State budget, so the autonomous communities have been able to prepare their accounts for 2022 knowing the amount. What can be appreciated is that no community has received less resources despite the race of some regional governments to lower taxes, as is the case in Andalusia. Its deliveries on account grow the same as the average and that of Catalonia: 11%, up to 1,918 million. In the case of Madrid –the third community with the most endowment–, the increase is 9.8%. The total figure is 1,436 million.

The Treasury specified that to these figures, which are the result of the estimate of tax revenue based on the economic forecasts included in the General State Budget for 2023, "add the deliveries on account of the Global Sufficiency Fund and the transfer from the Fund Fundamental Public Services Guarantee”. These last two funds are calculated using very complex criteria and which –according to economists such as those of the IEB-UB or the IVIE– undermine the financing model, since they introduce high levels of discretion.