The Catalan fiscal deficit: a historical constant
ARA has obtained access to the Catalan government's official calculations on the fiscal deficit for 2022, and the conclusion is that while there is a slight decrease compared to the 2021 figures, it is clear that this is a structural problem in the relationship between Catalonia and the Spanish public sector. In 2022, the difference between what Catalonia contributed to the Spanish state coffers and what the state returned in the form of investments and public policies amounted to €21.092 billion, a figure equivalent to 8.2% of Catalan GDP. The previous year, the fiscal deficit calculated using the monetary flow method was €22.013 billion, or 9.6% of GDP. In one year, the difference was reduced by approximately €1 billion and slightly more than one percentage point of GDP.
However, if we look at the historical series (1986-2022), we see that this 8.2% practically coincides with the average for the period, which is 8.1%. Therefore, the only possible conclusion is that the fiscal deficit is a historical constant that depends less on the political affiliation of the state governments than on external factors, such as an economic crisis or a pandemic. If we look at the figures from the other calculation method, the burden-benefit method, we see slightly lower figures, but they also maintain historical consistency. In 2022, the deficit would have been 14,665 million, 5.7% of GDP, while the average for the last 20 years is 6% of GDP.
Broadly speaking, Catalonia contributes resources to the State slightly above its economic weight, which is 19%, while receiving less than its population share, which is 16%. This constant fiscal deficit of 8% of GDP is a heavy burden that explains a good part of the problems in the Catalan public sector and also the infrastructure collapse we have seen in recent weeks. Experts point out that a reasonable fiscal deficit, given that Catalonia is a wealthy region within the Spanish context, should be at most 3% or 4% of GDP, but not between 8% and 10%.
Halving the fiscal deficit should therefore be a shared national objective. And there are two main levers for this: the financing system and investments. The Spanish government has put forward a financing proposal that would improve the Generalitat's revenue by 4.7 billion euros, which is positive but does not solve the problem on its own. The real black hole remains investments, which in Catalonia's case maintain a rate of execution far below the average, also a historical constant. The creation of a consortium between the State and the Generalitat is currently being negotiated, which should ensure that the budgeted funds are ultimately spent.
In any case, the fiscal balance figures should serve to educate and refute those who say that Catalonia has no financing problems. And what would be reasonable is for the State to make public the data for all the autonomous communities so we know who receives and who contributes. An exercise in transparency that would clarify many things.
