The Valencian Community of Ximo Puig is the region with the most deficit and almost triple the reference rate

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Updated on Tuesday, 23 November 2021 – 14:54

Its deviation will be 1.5%, while the Region of Murcia will reach 1%. Both regions denounce their “under-financing” and have created a common front for financing reform

The president of the Generalitat Valenciana, Ximo Puig, and the president of the Region of Murcia, Fernando Lpez Miras, EM

The The Valencian Community will be, with a notable difference, the region with the greatest deficit at the end of this year. The region governed by the socialist Ximo Puig closed the year with a budget deviation of 1.5% of GDP, which also means being close to tripling the reference rate of 0.6%.

This is clear from the Fiscal and Financial Observatory of the CCAA that Fedea has published today, in full debate and parallel meetings to try to agree on a new autonomous financing, and that has been prepared, among others, by Jos Ignacio Conde-Ruiz and Carmen Marn, who thus explains the figures to this newspaper. “Last year’s data was bad enough, with a first half of the year in surplus but a very bad data in the second half. And this year, in the first six months the data was 0%, and we hope that the second semester is equally negative “, explains this doctor in Economics and analyst of the Foundation for Applied Economics Studies.

The document does not go into assessing what are the reasons for these bad data that are also visible in the Region of Murcia, whose expected deficit is 1%. On the other hand, the one who has only done it is the Valencian Community Finance Minister, who has not shown a single doubt that this figure is due solely to the under-financing that in his opinion the region suffers and that he denounces whenever he has occasion.

“It is not new, as it is caused by the underfinancing that we suffer. In fact, after the Valencian Community, the next autonomous region with the greatest deficit is Murcia (1%). Logically, the two regions with the worst financing, “explained Vicent Soler.

“The Mediterranean arc has historically been under-financed and, furthermore, it continues to lack the necessary infrastructures and resources to continue growing and developing, such as the Mediterranean corridor. The figures show this inequality that cannot continue to be perpetuated and even less so. a time of post-pandemic recovery like the current one, “he added.

Precisely alleging these reasons, the Valencian Community and the Region of Murcia have held a bilateral meeting today “to put forward a joint proposal to reform the financing model.” They have not participated, therefore, in the one organized by the president of the Xunta, Alberto Nez Feijoo, and to which eight regions of different political signs have attended: Aragn, Castilla y Len, Castilla-La Mancha, Extremadura, La Rioja, Cantabria and Asturias. The reason, the first point out, is that they have not been invited, but there is also a noticeable difference between them in terms of the model that should govern the new autonomous financing.

Navarra, in the lead

On the other hand, that is, among the regions with a better situation of budgetary stability, it stands out especially Navarre: according to Fedea’s estimate, to end the year with a significant surplus of 2%, a situation that is directly linked to the greater resources enjoyed by the provincial communities.

However, it is striking that, despite enjoying the same foral privileges, Basque Country It is by no means in such a favorable situation. Suffer a deficit of 0.1%, a figure obviously worse than that of Navarra but also than the surplus of 0.1% that will register Madrid and Cantabria, or the 0.9% and 0.7% that will yield Canary Islands and Asturias, respectively.

And in global terms, Fedea’s work estimates that the joint deficit of the communities will be -0.1%, a figure significantly better than the one estimated by the Government. However, those responsible for the report warn that “autonomous finances are not under control“.

The good data, they point out, “is due to the fact that the communities have received extraordinary income from the Covid and also from the extraordinary collection” obtained thanks to the taxes ceded after the pandemic year.

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