Regional funding: get paid immediately, without depending on advances

BarcelonaOne of the advantages of the financing model agreed upon between the Spanish government and ERC (Republican Left of Catalonia) is related to management. Specifically, it eliminates advance payments for those autonomous communities that choose to do so. This means they would receive their revenue in real time instead of through advances, with a final settlement made after two years. Currently, the autonomous communities receive 98% of their funds through advances estimated by the central government, and the remainder after two years. In the final settlement, the autonomous communities may either receive more funds or have to return them, depending on whether the estimates were too optimistic or too pessimistic. For 2025, the settlement was based on the 2023 revenue figures.

The Ministry of Finance, headed by Vice President María Jesús Montero, is now proposing that autonomous communities that wish to do so can participate in a kind of common personal income tax (IRPF) fund to simultaneously deposit revenue with the central and regional administrations, instead of continuing with the current system of advance payments followed by subsequent payments. The decision made by the communities, on a voluntary basis, will remain in effect for five years. Through this formula, the territories that choose it will be able to plan better according to the revenue collected in real time. However, for the rest, the commitment is to "negotiate with the autonomous communities so that settlements occur earlier." This method of improving management is one of those put on the negotiating table months ago by the Secretary of State for Finance and President of the State Tax Agency (AEAT), Jesús Gascón. This was one of the issues highlighted by the Republican Left of Catalonia (ERC), as it allows for a better understanding of the available resources. Furthermore, in the opinion of the Republicans, it represents a leap forward in the financial autonomy of the regions that desire it, and therefore, for the Generalitat.