The deployment of the European Next Generation recovery funds continues to distort the analysis of the execution of the Generalitat's investments. Last year, the Government executed 85.5% of the initial budget if the aforementioned European funds are not taken into consideration. In the 2023 execution report recently published by the Department of Economy, it is highlighted that “the analysis of the execution of investments with respect to the initial budget allows us to visualize whether” what was initially planned in the budgets has been executed.
Throughout the year, new investments are incorporated into public accounts, such that the initial budget grows considerably. Last year, it went from almost 1.3 billion euros to more than 1.9 billion with the expansions. Regarding that final amount, the execution is 63.4%. The third figure offered by the report is the execution including European funds, which rises to 94% of the initial budget.
According to the Generalitat report, “real investments increase by 291.3 million, 31.5% compared to 2022.” There were a total of 1,216 million. In the details of compliance with the accounts, it is highlighted that investments grow due to contributions to new infrastructures, for example, education or health. And those for “road maintenance” fall, which were more important in 2022.
In recent years, the Generalitat has maintained a high level of execution of investments, unlike what happens with those budgeted by the State in Catalonia. In 2021, the State actually invested 36% of what was planned, while in 2022 it rose to 43%.
The other side of budget execution is the collection achieved throughout the year. The non-financial income for 2023 of the Generalitat rose to 35,337 million euros, 10.6% more. The collection of taxes on property transfers and on documented legal acts, which are those directly linked to the real estate sector, fell, in accumulated terms, by 12.8% and 20.2%, respectively "reflecting the decline in the sector", explains Economia in its report. Revenue has fallen since May, but in December there was a more positive evolution. “Real estate transactions fell and the number of mortgages fell as a result of the increase in interest rates,” the report says. Apart from the Generalitat's own and assigned taxes, in 2023 "the liquidation of the financing model contributed 2,020.5 million while the previous year was zero."
In the income chapter, it stands out that the collection from the wealth tax was reduced by 3.7%. The Economy Department, headed by Natàlia Mas, justifies this because in the “previous year there was extraordinary income derived from Treasury inspection reports.” The majority of these investigations are for fictitious transfers of residence, either to another community or outside of Spain.
Regarding expenses, last year they rose to 37,779.3 million euros, 7.6% higher than those recorded in 2022. “Personnel expenses have increased due to increases in salaries and Security contributions. Social and also due to the increase in the number of personnel, especially in the field of education and health.” The remuneration bill alone amounts to 10,507.8 million. There are 652 million more than in 2022.
