A budget square between comes and goes. The theory says that people who buy more can invest more. The problem is that the theory looks good in the books, but in most cases it doesn’t quite fit the reality. It is a paradox with which Consell’s calculations live: After many years at the bottom of the table, Generalitat is already spending on public services above the average of other autonomies, and yet it does so by staying within. At the bottom of the table, there is income according to the financing system.
These are data from the Independent Financial Responsibility Authority, the Economic-Financial Information Observatory of the Autonomous Communities of Airef. Accordingly, by 2021 figures, the Community of Valencia received 2,739 euros per capita from the funding model, 218 below the average (2,957 euros per capita), which did not prevent Consell from allocating it to the “basic public” payment. services » (Education, Health and Social Services) 3,249 euros per capita, 95 euros more than the state average (3,154 euros per capita).
This is a figure that the Valencian Government is proud of, reversing cuts made years ago, and this has consequences. As he warned in an interview this Monday, the cost in this case point out In the form of debt creation and the corresponding interest payment, the department responsible for public accounts has a bill of over 200m euros per year, said Arcadi, the Spanish Minister of Finance. They indicate with variations by type: 215 million in 2022, 265 million in 2021, and it could reach 500 in 2024 if the price of the coin doubles.
“We may be in the state average in social expenditures, but this costs us about 200 million euros in interest,” said the minister. He also defended against the definition of “fictitious” the accounts drawn up by the Valencian Administration for the item “demand” of 1,300 million, which is included each year and allows “payment for utilities” according to Spain. In fact, the data from the tax office shows the following fact: Social expenditures caught the average, even if revenues were not.
economic over-exertion
Therefore, going back to the figures published by Airef, the Valencian Community is making an extra effort to sustain social spending compared to other communities. If the average is 100, the Generalitat receives 92, and its expenditure is 103. The difference between income and expense is minus 11 points. In the most well-financed Cantabria, the system grants 3,593 euros per capita, 121 euros on average, while social expenditures are 3,470 euros per capita, 110 of the average.
This means that although Cantabria invested 220 euros more per capita in utilities in 2021 than the Community of Valencia, the gap between what it receives from the financing system and what it spends, compared to the average, is 11 points positive compared to the previous year. 11 minus points from Consell. Or to put it in per capita figures: Subtracting the amount taken from the state financing system and spent on public services, Cantabria leaves 123 euros per capita, while the Valencian Community generates a debt of 510 euros for Valencia.
Intersecting accusations of delaying reform
Puig calls for a change in the country’s vision, while Mazón blames both parties, PSOE and Mas.
The new day when accusations of autonomous finance reform intersect that never came. Ximo Puig, head of the Generalitat, said that an issue that he sees as “structural” and that has an “always” time “can never have a time”. He added that “the new model will be unlocked” if there is a different vision of what political coexistence should be in Spain. “If not, it will be impossible.” And he put as reference the impossible agreement to renew the General Assembly of the Judiciary. Thus, the president stated that “this is not just a question of the Government”, but also “a question of the opposition, political groups, regions”. The leader of the Valencia opposition does not look at the issue of responsibilities in the same way. According to Carlos Mazón, head of the Popular Party of the Valencian Community (PPCV), “not changing the funding model is a major failure and deception of Sánchez and Puig with the Valencian Community.”
“The Community of Valencia, which received the least from the regional financing system in 2021, and we will not have a new system next year,” Mazón said in a statement. “The truth is that there is no political will from either Puig or Sánchez to undertake this change next year. They promised us something that was fundamental to us in these years and they didn’t deliver,” he said. “It’s unfortunate that they haven’t been able to bring in enough funding to finance our core services like education, health and social policies. It’s not numbers or cold statistics that matter, it’s better public services for Valencians.” is guaranteed,” Mazón said. In response, Aitana Mas, vice president of Consell and leader of Compromís, blamed the PP and PSOE. Thus, she asked the central government for a “transitional system” to provide “extra money” to the national average against the “delays” of the new model. Saying that “all lines have been crossed” on this issue, Erdogan asked the PP and PSOE to reach a “single vision” for each party, because “they have a different vision in each region.”