Basque estates will collect 18.3 billion this year euros, 700 million less than initially forecast, and a figure similar to that of the previous year, according to the closing forecast of tax revenues carried out by the Basque Council of Public Finances (CVFP). This decrease is attributed to the impact of returned to mutualists, to the tune of 800 millionthat the Supreme Court forced to compensate for abusive deductions made in the past.
The Basque Finance Council, composed of the Basque Government, provincial councils and the Association of Basque Communes-Eudel, also established the Collection forecast for 2025, estimated at 19.718 million.
During the press conference that followed, the Minister of Treasury and Finance, Noël d’Anjou, stressed that the forecasts for tax collection in 2024 “would have been very positive” without the impact of refunds to retirees who have contributed. mutual funds before January 1, 1979, some returns made in accordance with several judgments of the Supreme Courtand whose estimated amount is around 800 million euros throughout the Basque Country.
The Executive stressed that “despite the notable impact” of these declarations on the 2024 collection, tax revenues have “slightly” increased compared to 2023, where 18.212 million euros were collected. In turn, he indicated that the three provincial councils “have demonstrated their solvencyable to update their accounts in relation to the declaration of retirees for the 2023 financial year and not prescribed.
The final collection estimate for 2024 represents an execution of 96.3% of the budgeted collection from a year ago, or almost 700 million less (699.3 million). Thus, the forecasts for liquidation of the collection of agreed taxes were approved. for the year 2024, which amounts to 18.3 billionagainst the 19 billion initially planned. By territory, most of the collection corresponds to Biscay (9,457 million euros), followed by Gipuzkoa (6,021 million euros) and Alava (2,822 million euros).
Regarding the forecast for next year, in absolute terms it is estimated that provincial councils will collect 19.718 million euros from agreed taxes. Collection growth expected to be 3.8 percentage points higher than the 2024 budget.
Income and contributions
This forecast is 7.7% more than the actual closing forecast for 2024 collection. If we ignore from the annual comparison the part of refunds to retirees that are not consolidated next year, the increase in tax revenues in 2025 compared to the final forecast would be similar to the planned expansion of the Basque economy for that year. The new macroeconomic table prepared by the Basque Government envisages a increase in nominal GDP in 2025 of 4.3%.
As for the contributions of provincial councils to common institutions, A total quantity of 13.2 billion by 2025according to the following horizontal contribution coefficients: 16.04% for Álava, 50.37% for Bizkaia and 33.59% for Gipuzkoa.
The forecast of The General Adjustment Fund for 2025 amounts to 178 million euros. The financing of this fund will correspond 70.81% to the Basque Government and the rest to the provincial councils. This sum will be distributed between the historic territories of Alava and Gipuzkoa, which provisionally correspond respectively to 100.4 and 77.6 million euros.
