The First Vice President and Minister of Finance will introduce the communities Proposal to reform the regional financing modelIt expired in 2014, although it has remained in effect since then, over a period of approximately two months (in January or February of next year). It is one of the announcements made by María Jesús Montero to officials of the regional branch at the meeting of the Council for Financial and Fiscal Policy (CPFF) held on Monday in Madrid.
According to a number of regional finance ministers, the ministry will submit a proposal for a complete reform of the financing system in the first quarter of next year, with the aim of… Obtain its approval before the Legislative Council ends in 2027.
It was a meeting that lasted just under four hours, during which the PP communities, who left the previous meeting on February 26 early, expressed their discontent with what they considered “Advancing to compensate the nationalists”according to the opinion of Rocío Albert, Minister of Economy, Finance and Employment of the Community of Madrid.
The government has once again submitted to self-government It is the same deficit path that Gontz overturned in the House of Representatives in July of last year. This implies that it again limits the gap between income and expenditure that regional governments can afford each year between 2026 and 2028 at 0.1%. This gap gives it a financial margin of $5,485 million for the entire period. Carles Puigdemont’s formation made his support for the stabilization path conditional on the executive giving more oxygen to communities.
In fact, some of that oxygen will come to them in two ways: First, the government raises the spending rule from 3.2% to 3.5% (they will have an additional 20% margin to increase their eligible spending). On the other hand, autonomy Next year they will receive a record 157.731 million In advances on tax revenues that exceeded all expectations thanks to the strengthening of the economy (mainly private consumption and investment) and employment. This amount represents a 7% increase over what they will receive this year. To this amount must be added another 12,569 million euros for the positive adjustment for 2024, a year in which income through taxes also exceeded expectations.
However, the regions governed by the People’s Party Montero reminded that they currently support more than 35% of the total expenditures for devolved powers. Hence, Valencian Community Advisor Ruth Merino said: Write off the distribution as “unfair” We regret that the spending rule will prevail over everything else. Merino warned that it was “impossible” for his independence to adhere to this deficit and spending rule. He concluded by saying: “We do not agree.”
But from Catalonia, its advisor left the meeting “satisfied”. Alicia Romero believes that the 0.1% deficit will gain margin to be able to allocate resources to welfare state policies, although it has had an impact on the “underfunding” that Catalonia suffers from.
The government improved growth forecasts this year by twenty to 2.9%. This new estimate and debt forecast (the liabilities of all departments in the third quarter at 103.2% of GDP, according to the Bank of Spain) will allow the executive to set the spending ceiling or non-fiscal spending limit for the general state budgets for 2026, which will be approved on Tuesday in the Council of Ministers.
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