The Court of Auditors recently approved a report showing that the total allocation of the Interterritorial Compensation Funds in 2023 amounted to 432.43 million euros, although this amount has fallen by 68% since 2009.
This emerges from the “Inspection report on interterritorial compensation funds”, approved by the plenary session of the Court of Auditors, which analyzes the level of compliance with the regulatory rules of these funds in the autonomous communities and cities that do not have an autonomous external control body.
In 2023, the total allocation of the Interterritorial Compensation Funds amounted to 432.43 million euros, with the report highlighting that the size of these funds has been continuously reduced in recent years, reaching around 32% of the 2009 level.
In this context, the overall assessment of the report highlights that “the limited resources of these funds severely limit the achievement of the purpose for which they were intended”.
The Compensation Fund is enshrined in the Spanish Constitution and was established to correct interterritorial economic imbalances and to give effect to the principle of solidarity. The beneficiaries were initially all municipalities, but later only the “most disadvantaged” areas.
In a third stage, starting with the new regional financing system in 2001, the Interterritorial Compensation Fund will be divided into two funds: Compensation Fund and Complementary Fund.
About The Author
