2023-09-22 13:30:56
Fitch Ratings The operating balances of the Spanish autonomous communities are expected to improve in 2023-2024 as economic growth drives increased income in the regions.
According to the latest report published by the credit rating agencyoperating income is expected to increase in 2023 supported by solid growth of 10.8% in state allocations, a positive revenue settlement of €11.1 billion from 2021 and strong own tax collection.
For 2023, Fitch Ratings also expects operating expenses to increase between 4% and 5% due to the greater availability of resources in the financing system and the current high inflation, which will drive current spending, especially in health departments. and social assistance. In addition, some of the expenses related to the Covid-19 pandemic are expected to become structural.
The reactivation of fiscal objectives in 2024, with a strict deficit objective, should lead to greater control of general expenses. However, inflationary cost pressures, rising interest rates and some fixed costs, particularly in the education and healthcare sectors, may pose difficulties.
Extensive EU funds worth €77.2 billion, including the Recovery Plan and React-EU, will maintain high investment spending until 2026 and therefore reduce debt, according to Fitch Ratings.
However, the agency expects the capital balance in 2023-2024 to be more negative than in 2021-2022 (minus €5 billion on average) due to faster utilization of EU funds, including a large part of those received in 2021 and 2022.
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