The extraordinary funds injected by the state into autonomous communities to face the outbreak of the covid pandemic in 2020 continued. reduced to Valencia Community in terms of funding. This is the conclusion of the most recent study published by the Foundation for Applied Economics Studies (sacrifice), additional resources allocated to deal with the emergency ” to further improve the best-treated areas (areas) at the expense of those in the lower tail of the distribution”. Specifically, there were four regions during this exercise that were further deteriorated in terms of the overall distribution of resources by the Government, and the Valencia community was the second sub-community. Specifically, the region administered by Ximo Puig achieved an index. 89.5 out of 100. Only Murcia had a worse rate of 89.4. Andalusia (94.2) and Castilla-La Mancha (99.3) were also affected above average. Meanwhile, La Rioja (118.9); Cantabria (118) and Extremadura (108.2) were the most beneficiaries.
Fedea’s study also shows that Murcia, Valencian Community, Andalusia and Castilla-La Mancha are four partner systems communities with a funding index for homogeneous skills per capita adjusted below average. In other words, if the extraordinary income of the government due to the epidemic is left aside, they are also in the last place. In this case, the final index of financing for homogeneous competencies per person adjusted was 92.2 in Murcia; 93 in the Community of Valencia, 94 in Andalusia and 95.8 in Castilla-La Mancha. In contrast, the above-average Cantabria (116.9); La Rioja (111.7) and the Canary Islands (110.3).
The four worst-hit regions are those that demanded a compensation fund from Pedro Sánchez’s manager just as the regional finance system was being reformed. This report confirms that these four autonomous communities have a below-average funding rate, demanding that the adjusted population be taken into account in the new regional funding model.
Consequences of underfunding
The Community of Valencia and Catalonia were the two autonomous communities with the highest debt to the State in 2020, both per capita and in absolute terms. In the first case, you owe 8,428 euros per personThe Catalan region has a debt of 8,408 euros for each citizen. On the contrary, Madrid paid its debt to the General Administration and is at zero. Fedea points out that in fiscal 2020, the debt of autonomous communities to the State reached 178,865 million euros.
At this point, Catalonia is the autonomous community with the highest debt to the State in absolute terms, with 63,615 million euros in 2020. It is followed by the Valencian Community with 41,931 million euros.
The region with the highest debt per capita is the Community of Valencia (8,428 euros per capita), followed by Catalonia (8,408 euros per capita) and Murcia (6,015 euros per capita).
Insufficient funding driven by the Community of Valencia is one of the main reasons explaining the demand for the region between 2021 and 2020. 62,501 million euro loan to the state. This is something that generates an interest payment of €2,427 million.
Source: Informacion
Brandon Hall is an author at “Social Bites”. He is a cultural aficionado who writes about the latest news and developments in the world of art, literature, music, and more. With a passion for the arts and a deep understanding of cultural trends, Brandon provides engaging and thought-provoking articles that keep his readers informed and up-to-date on the latest happenings in the cultural world.