The Generalitat estimates that Catalonia's fiscal deficit is between 6.1% and 8.5% of GDP

Catalonia's fiscal deficit in 2019 grew to 6.

Thomas Osborne
Thomas Osborne
01 September 2022 Thursday 05:44
16 Reads
The Generalitat estimates that Catalonia's fiscal deficit is between 6.1% and 8.5% of GDP

Catalonia's fiscal deficit in 2019 grew to 6.1% or 8.5% of GDP depending on the methodology used. They are estimates of the Generalitat, since the State since 2016 does not provide the necessary data to be able to carry out the calculations.

Translated into euros, the deficit figure means that the State allocated to Catalonia between 14,556 million and 20,196 million less than what the community as a whole received via taxes and social contributions. The deficit percentage is in line with those recorded in recent years.

There are two different methodologies for approximating the fiscal deficit figure. One is the so-called monetary flow, which measures the expenditure made in a given territory, and the charge-benefit measure, which measures the expenditure that the citizens of a territory benefit from, even if the disbursement is made in another community.

In the case of spending by the State in Catalonia, the deficit suffered by the community in 2019 was 8.5%, which is equivalent to 20,196 million. The percentage is higher than the 8% that occurred in 2016, which is the last year with real figures, although it is a figure similar to the historical average that stands at 8%. Sources from the Department of Economy said that around 25% of the information to calculate the fiscal balances has not been provided by the State. To cover this informative "blackout", the department's technicians have estimated that the figures in these sections remained stable with respect to the average of the years 2015 and 2016.