Catalonia leads in public spending three times more than Madrid per inhabitant, according to the latest settlement of the regional budgets of the Ministry of Finance. The current data on per capita expenditure and income are contributions of inter-territorial solidarity. In addition to the need for a reform of the financing model, what is notorious is the complexity of the challenges and the situation faced by regions such as Catalonia and Madrid.
Distribution of resources in the different autonomous communities
This is a fundamental indicator for understanding how resources are distributed in the different autonomous communities. This means that Catalonia has a per capita public expenditure of 3,730.22 euros, which is higher than that of Madrid, which stands at 2,933.28 euros. It is also above the Valencian Community with 3,332.22 euros.
This can be seen through the total proposed budgets, such as Catalonia, which has a budget of 43.6 billion euros, and Madrid, with 27.558 billion euros.
In terms of per capita income, Madrid is slightly ahead of Catalonia, with 3,679 euros compared to 3,453 euros in Catalonia. The difference in expenditures and revenues raises questions about the equity and efficiency in the distribution of financial management and resources of each community.
Catalonia leads in public spending: contributions to inter-territorial support
Contributions to inter-territorial support uncover another layer of financial confusion. Madrid also contributes significantly more than Catalonia, which is 4,500 million euros to the Sufficiency and Guarantee Funds, and a total contribution to the State of 5,177 million euros.
In comparison, Catalonia paid 1,697 million euros to the Guarantee Fund. It also received 732 million euros from the Sufficiency Fund, with a net contribution to the State of 146 million euros.
Updating of the regional financing model
The autonomic financing model last updated in 2009 and expired in 2014, which has been in decline for a decade. This change in status has intensified discussions about the need for innovation to improve fiscal disparities and the needs of the regions.
Within the more prosperous regions, such as Catalonia, Valencia, Madrid and the Balearic Islands, they have negative fiscal balances. This fuels the demands of independent movements that seek to reduce the fiscal deficit through direct negotiation with the State, similar to the model of the Basque Country.
This debate in Catalonia about autonomous financing has increased in the context of these negotiations with the aim of forming a government in the Generalitat. Pere Aragonés, as president of the Generalitat and candidate for re-election, argued that Catalonia defies a lack of economic resources.
It is a demonstration that is part of the larger narrative of Catalan secessionism, which highlights alleged economic injustices as testimony for independence.
