El Consell announced yesterday the liquidation of the Generalitat’s 2023 budget, which, according to spokesperson Ruth Merino, shows a negative result of 2.946 billion euros, about 300 million less than the prior year. These accounts were designed by the Botànic coalition, but since July they have been managed by the new PP and Vox government.
Merino attributed the red numbers to the previous leftist administration, noting that the 2023 outcome was strongly conditioned by a notable rise in recognized obligations, which reportedly increased by 11.6 percent according to the finance minister.
The liquidation has not yet been posted on the Generalitat’s website, preventing a deep dive into the figures. Nevertheless, Merino pointed out that the growth in structural spending undertaken by the Botànic in the last year, which acts as a heavy inherited burden for the Mazón administration, concentrates in chapters 1 and 2 of the budget — personnel and current spending on goods and services — making these commitments difficult to modify.
The head of the Valencian public treasury estimated the inherited rise in payroll costs at more than 540 million euros, a 7.3 percent increase from 2022, while current payments would be up by 853 million compared to the previous year, a 23.3 percent rise.
Finance authorities interpret that the marked increase in these two expenditure categories and their large relative weight within the budget reflect the significant growth in structural spending consolidated by the previous council, despite the disappearance of extraordinary resources tied to the fight against the pandemic or the war in Ukraine.
From the PSPV, this interpretation is debated. They criticize the new council for liquidating the budget at these red-number magnitudes, even though the financing system resources are up by 26 percent thanks to higher government transfers.
They remind that the personnel headcount had to be reinforced due to the pandemic effects and that by 2023 these roles had become structural. They also point to higher salaries agreed with government and unions. Regarding current expenditures, the socialists attribute the rise to higher prices driven by the war in Ukraine.