Minister of Finance and Public Functions Maria Jesus Montero informed the Autonomous Communities that next year they will receive $134,336 million from the funding system, up $26,130 million from the previous year (24% more). The sources who were present at the meeting of the Fiscal and Financial Policy Council were given to Europa Press.
This Wednesday, Montero told the autonomous communities at a meeting of the Council on Fiscal and Financial Policy (CPFF) that next year they will receive the largest resources in their history from the funding system.
This growth is explained by the fact that deliveries on the account increased by 11%, to 124,292 million, and positive settlements in 2021 reached 10,981 million.
The head of the finance and civil service portfolio explained that the positive liquidation rate was due to the government’s prudent forecasts and measures taken to boost employment and economic growth.
The Minister recalled that, including the data for 2023, during the five years of Pedro Sanchez’s rule, the autonomous communities will receive 178,750 million more than in the last five full years of Mariano Rajoy’s rule, which represents an increase of 40%. in autonomy financing.
A nod to autonomies in an election year
Last Tuesday, the government approved a spending ceiling, which is the cap the government plans to apply to general budgets, in this case for 2023. From this moment negotiations begin, which promise to be difficult, even within the executive branch. PSOE and United We Can must agree on the contents of the budgets.
Next year is an exercise loaded with elective appointments. The calendar fixes the appointment of regional and municipal elections, which are scheduled for May. It was to these administrations that Montero winked this Tuesday. While the government has kept its deficit target at 3.9% for next year, it has changed the distribution. The central administration will have a smaller margin by lowering the deficit target from 3.4% to 3.2%.
Thus, the communities will have two-tenths of the margin they did not have in the previous distribution made by the Treasury. They could run a deficit of 0.3% compared to the original forecast of 0.1%. This difference would be equivalent to approximately $2,500 million. In addition, municipalities will have a softer surplus target of 0.1% compared to the original 0.2%. “The government is making more efforts to ensure that the autonomous communities have a larger supply,” Montero assured, stating that it was “the executive branch that provided the autonomous governments with the most resources.”
PP wants less deficit but more funding
The Finance Ministers of the Community of Madrid and Andalusia, Javier Lasqueti and Carolina España, assessed this Wednesday, at the entrance to the Fiscal and Financial Policy Council, the softening of the deficit target to 0.3% in 2023, proposed by the Ministry of Finance. for the communities, deeming this margin insufficient and demanding that the government of Pedro Sánchez “begin by reducing its debt levels”.
“It seems to us that the smaller the deficit, the better, but the state should start by reducing its level of debt and make savings, we have carried out a very reasonable policy, not going beyond these limits at all,” Lasketi. proclaimed when asked about the 0.3% rate.
However, the Madrid adviser rebuked the government that, from his point of view, the treasury “has an excessive deficit”, recalling that the autonomous communities are responsible for most of the costs, such as health care or education.
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