The liquidation of the financing model of the autonomous communities has raised the State deficit until July above the level it had a year ago. The Ministry of Finance reported that the deficit stood at 2.68% of GDP in the first seven months of the year. They are 0.87 percentage points more than in the same period of 2022. In absolute value it stood at 37,682 million euros until the month of July, which represents an increase of 56.8%.
The ministry assured that this year the final settlements of the 2021 financing system amount to 11,798 million in favor of communities and local entities. The financing model provides for the State to give the communities an amount of money based on what is estimated to be collected in that community. At the end of two years, accounts are reviewed and the actual collection is calculated and “settled” with the autonomous communities based on the advance payment received. In 2021, as the collection was higher than expected, the State has had to disburse an amount much higher than usual, increasing the deficit.
On the other hand, the deficit of the whole of the Central Administration, Social Security and the autonomous communities, excluding financial aid, stood at 30,186 million euros until June, which represents a decrease of 5.1% compared to the previous year. The figure is equivalent to 2.14% of GDP.
By communities, Murcia, the Balearic Islands, Valencia and Navarra are the four regions that have registered the highest deficit during the first half of 2023, all of them exceeding 1.3% of GDP. The average deficit of the autonomous communities stands at 12,110 million (0.86 of GDP), increasing almost 4,000 million compared to the same period in 2022.
In the case of Catalonia, the gap between income and expenses stands at 1% of GDP in the first part of the year compared to 0.65% in the same period of 2022. This is 1,000 million more in absolute value, since the deficit It is 2,684 million. It is the largest of all the autonomies.
On the other hand, the communities with the least deficit are País Vasco (-0.08%), Asturias (-0.28%) and La Rioja (-0.46%).
Regarding the collection in the January-July period, current taxes on income and wealth reach 47,028 million, a figure 0.4% higher than that of the first seven months of 2022.
