The Fund of Applied Economic Research (Fedea) recently published a report in which he puts Catalonia, the Madrid, Eskadi community, the Valencian community and Mursia as five regions that closed the year of 2024 with a negative budget balance, while Extremadura was a community with the largest residue, up to 1.6% of GDP.
This follows from the report on the assessment of the structural balance of autonomous communities that Manuel Diaz (Fedea), Carmen Marin (Fedea) and Diego Martinez (Pablo Olavid and the University of Fedea).
After making adjustments to the budget balance, experts evaluated the structural balance Autonomous communities -1.1% of GDP in 2023 and 2024.
Without making adjustments and without participating only in the budget balance, communities with a budget deficit in 2024 were the Valencian community (-1.9%); Murcia (-1,1%); Basque country (-0.6%); Catalonia (-0.4%) and Madrid (-0.2%).
On the contrary, taking into account the budget balance, Communities that received excess were extreme (1.6%); Navarra (1%); Canary Islands and Asturia (0.9%); Cantabria (0.8%); Andalusia (0.7%); Balearic Islands and Aragon (0.3%); Galicia (0.2%) and Castilla-la Mancha. In the case of CASTILLA Y LE and La Rioja, the balance is zero percentage.
But there are adjustments
In her report, Fedea made various adjustments, such as the transfer of settlements of the regional financing system in its calendar year. “This liquidation installation increased to 0.1% in 2023 and 0.7% in 2024, both in terms of GDP,” he explains.
In second place, The influence of the economic cycle on public accounts was dropped; In this sense, the entire CC.Aa. In the extensive phase of the cycle, he created public excesses of 0.1% of GDP and 0.2% of GDP in 2023 and 2024, respectively.
For calculation purposes, these cyclic excesses will increase the negative values of structural residues. Finally, “the budget balance in the amount of non -damaging operations should also be insignificant.”
In this context, Fedea emphasizes the “heterogeneity” between autonomous communities. “This alleged structural imbalance will reach the levels of about -2% of GDP in 22 C.AA, such as Valencia, Catalonia and the Mursia region. In two regions there is a positive structural balance: the Canary Islands and Navarra, ”the report will say.