Murcia will receive 162 million more for 2018 of the regional financing system

 

 

Andrés Carrillo y Cristóbal Montoro

Andrés Carrillo and Cristóbal Montoro CARM

The Minister of Finance and Public Administration, Andrés Carrillo, who participated this Thursday in the meeting of the Fiscal and Financial Policy Council (CPFF) held in Madrid, announced that “the Murcia Region will receive from the Ministry of Finance and Public Administration 162 million euros more for 2018 as a non-finalist regional financing “.

This means that the Region will go from obtaining 3,031 million euros in 2017 to 3,193 million euros for next year. “So that we will have more resources for the preparation of budgets for next year, and to continue favoring social policies,” he explained.

Carrillo has highlighted “the good management of the regional government and the intense work to achieve budget balance, which has allowed the Region to reduce its deficit by 366 million euros in two years”.

The Minister of Finance explained that “last year the deficit was reduced by 31 percent, which represents 208 million euros, compared to the previous year.”

In this way, the Community deficit has gone from 1,365 million euros in 2010 (4.88 percent of GDP) to 464 million euros in 2016 (1.62 percent of GDP). “These figures assume that in six years, the Community has reduced its deficit by 901 million euros, which represents a reduction of the imbalance of 66 percent,” said the finance minister.

According to Andrés Carrillo, “this effort made by the regional government in reducing the deficit has been achieved at the same time that there has been an increase in social spending, in a region that receives the lowest level of income from the regional financing system. per capita to finance the same public services “.

The Region of Murcia receives 1,053 million less per year than the better financed community, which is Cantabria, and 250 million euros per year less than the average of the rest of the autonomous communities, with the same skills and offering the same services to citizens. The counselor has insisted on “the need to reform the system of regional financing to end the inequalities it causes”.

According to the latest financing data, the Region receives 2,085 euros per inhabitant, while Cantabria receives 2,869 euros per inhabitant; La Rioja, 2,769 euros per inhabitant; Extremadura, 2,669 euros per inhabitant; and Aragón, 2,631 euros per inhabitant. The Region is the penultimate community in financing per inhabitant, ahead of Valencia, which receives 2,062 euros per inhabitant.

At the Board meeting, the director voted in favor of the proposed budget stability targets for each of the autonomous communities, which stands at 0.4 percent for 2018, 0.1 percent for 2019 and 0 for percent for 2020.

Thus, the autonomous communities will be able to prepare their budget in 2018 with a deficit allowed one tenth higher than the 0.3 percent initially approved in the CPFF for the month of June. This tenth, represents in the total of the communities just over 1,000 million euros that can be allocated to the management of key public services, facilitating the process of fiscal consolidation and the transition towards full rebalancing of public accounts.

In the case of the Region of Murcia, the modification of the stability objective for 2018 and 2019 supposes the possibility of elaborating a budget with more than 30 million euros of those originally planned.

REFERENCE IN REDUCTION OF PUBLIC ENTITIES

In the Council has presented the study of reordering and rationalization of the public sector, efficiency and reduction of public spending. Based on the latest report published today, the Region of Murcia remains the third community that has made the greatest effort to reduce and rationalize its public sector, after the Balearic Islands and Castilla-La Mancha.

In concrete, Murcia would have reduced in six years its autonomous public sector by 61 percent, compared to the average decrease of the other regions of 38 percent. In July 2010, the instrumental public sector of the Region consisted of 103 entities, while at present it has been reduced to 40.

Likewise, the Economic-Financial Plan presented by the Region of Murcia was also approved at the meeting. It is committed to continuing the path towards balancing public accounts, which involves maintaining the efficiency measures of public spending, not increase the tax burden and increase revenues thanks to the situation of business confidence created in the region due to economic growth, lowering taxes, administrative simplification, the creation of spaces of economic freedom and the reduction of the deficit by increasing the policies of social spending.

The Council has also studied the Economic and Financial Plans presented by Catalonia, Galicia, Andalusia, Cantabria, Comunidad Valenciana, Aragón, Canarias and Extremadura.

Likewise, the report on the project has been treated to modify Royal Decree 635/2014, of July 25, which develops the methodology for calculating the average payment period to suppliers of Public Administrations, as provided in the Law on Budgetary Stability and Financial Sustainability, to adapt it to a European directive.

The Council, which was chaired by the Vice President of the Government and Minister of the Presidency and for the Territorial Administrations, Soraya Sáenz de Santamaría, and the Minister of Finance, Cristóbal Montoro, was assisted by counselors of the Treasury of the different communities autonomous.