The Govern will spend this year a total of 41,025 million euros. The increase in spending represents an increase of 7.6% compared to this year, “the highest annual growth since 2006”, according to the Government. But the Generalitat emphasizes that, without taking into account the allocation of European funds Next Generation For this year, which has fallen by more than 40% in relation to 2022, spending is increased by a total of 3,842 million, 10.7% more, to 39,839 million.
In the accounts, which reached a record level despite forecasting a slowdown in economic growth1,185 million of the ‘Next Generation’ funds are budgeted, 957 million less than in 2022. In turn, few of the measures agreed with the PSC are included, such as the B-40 or the expansion of the airportsince these are state-level projects and what affects the Hard Rock is linked to the administrative procedure.
This budget project, with an unprecedented level of spending and growth not seen in 17 years, approved by the Catalan Executive and delivered this Thursday by the ‘Councillor’ of Economy, Natalia Masto the president of the Parliament, Alba Vergés, will have to apply in a context of economic slowdown. The increase in the gross domestic product (GDP) expected of 1.7%, compared to 4.4% last year.
Before the PSC, the ERC Executive also reached an agreement with the Comuns, as well as with the social agents, employers and unions. Natàlia Mas has ensured that a good part of the expected income must be to the financing model, which allows more secure estimates. He added that calculations have been made avoiding the possibility of a recession.
Less weight of social spending
With a inflation which even closed last year at a level of 5.2%, includes policies that, according to the Executive, “activate in an economic and social shield”. Anyway, the weight of social spending will represent 73.2 of every 100 euros, compared to 74.6 last year. This slight reduction is due, according to government sources, to the increase in interest on debt and policies for the industry.
In addition to the economic and social shield, the acceleration of the energy transition and support for industry and culture stand out as objectives. The ‘Councillor’ of Economy has highlighted that the weight of social spending continues to account for three out of every four euros of the total budget and that the accounts have also been designed with a long-term perspective.
Salut endowment planned and actually spent
Health y education, with an additional 1,128 million, up to 11,423 million; Y educationwith 675 million, up to 6,825 million, are the areas that will grow the most in absolute terms, while Empresa i Treball, with 28% and Equality and Feminism and Culturewith 27%, are the Health departments that usually suffer a greater relative increase if their endowment will be registered, according to the text delivered in the Parliament.
In any case, especially in Health there is usually a large gap with respect to what was budgeted. Last year, the final merited amount was about 14,000 million, 20% more than the 10,295 million expected. For mismatches they are usually resolved through the so-called displaced expense, that is, passing invoices from one financial year to the next.
Another section that is growing is that of personalwhich will reach 282,887 people, with a net increase of 6,886 or 2.5%. In reality, 12,225 structural jobs are provided, of which 5,369 are temporary absorption. 55.5% go to Education and 35.1% to Health.
Investment
The investment, excluding European funds, will amount to 2,794 million, with an increase of 5.8%. If these resources are included, it reaches 3,796 million, below the 3,949 million of 2022. Of the total figure, 602 million will go to Salut, 271 million to road infrastructures; 259 million to railway infrastructures, 244 million to Education, 243 to the field of information society and telecommunications; or 127 million to the water cycle, among others.
According to the draft accounts, the deficit in 2023 will be 791 million, 0.3% of gross domestic product (GDP). That of last year will exceed the suggested 0.6% despite the suspension of fiscal rules, according to Executive sources. For its part, the debt should fall to 32.7% of GDP compared to 34.1% in 2022, according to the draft.
As a whole, if the entire public sector is added, which includes the Generalitat and 205 entities, the administration will manage 45,359 million euros.
One of the outstanding points in social policy is the 8% increase in the sufficiency income indicatoragreed with the employer and unions, which has not been updated since 2010 and from which more than 100,000 families will benefit, in addition to discounts for public transport, the promotion of public housing, the reinforcement of health or the reduction in half of dependent waiting lists.
The project lacks great tax news, since some of the new ones agreed with the Comuns, such as the one that will fall on the cruise ships, they still have to be regulated. In the income chapter, the financing model is the one that contributes the most, with 25,236 million, 20.6% more, followed by the own and ceded taxes, with 4,964 and an increase of 6%. In this section, the own taxes, with 368 million, decreased 10.1% and those transferred, with 4,596 million, grew 7.5%. Non-financial and non-final income grew by 4,152 million (+15.2%) due to the increase in the financing model, and despite the fact that the 500 million entered in 2022 must be deducted for the pending return of one month of VAT.
In income finalists, the accounts show a reduction of 699 million (-9%), up to 7,089 million, due to the reduction of European funds, which are reduced by 841 million (-55.1%) in the part of the recovery and resilience mechanism, and 148 million (-34.8%) of the React Funds.
Related news
The expenditure of the different departments of the Generalitat amounts to 32,699 million, with an increase of 11.7%. The section of interestswith 782 million, registers an increase of 22.6% as a consequence of the rise in interest rates.
With regard to spending by chapters, after the financial expenses the staff remunerationwith 7,099 million euros, with 13.1% more.