• Catalonia: Separatism opens a new front against the Government for financing
  • Financing in Madrid. 241 euros less for personal income tax in the "tax haven" of Madrid

The Generalitat opened a new judicial front yesterday with the Pedro Sánchez Executive, taking advantage of a real problem that is suffocating all the autonomous communities, not just Catalonia.

Why does the State owe money to the autonomous communities? The absence of Budgets - those of Mariano Rajoy are extended for 2018 after the failure of the project presented by the PSOE for this year - has suspended the controversial autonomous financing system and its advances on account. How do these advances work? The State, based on the tax collection forecast, advances the autonomous governments so that they can face basic services such as Health or Education in their territories. These advance payments are made every year based on the collection forecast and then reviewed every two, with the actual closing of the fiscal years. If the forecast fell short, the State enters the difference into the community, and if it was the other way around, the regions return the surplus, rarely without tensions. How much is owed to them? The communities have stopped receiving about 5,000 million of the advances on account this year, according to the collection forecast that the Executive had in its failed budget project. Also, a change in the VAT accounting regulations means that another 2,500 million are owed to them. Can a functioning Executive solve the problem? No, according to the Minister of Finance, María Jesús Montero. With a certain logic, to advance that money would be to take for granted some Budgets that have not been approved and would condition the next Executive, who could have another political sign, another tax scheme or, simply, other income forecasts. Will the problem persist while not Do you approve General State Budgets? It doesn't have to. The head of the Treasury has already announced that her department is in a position to enable, by decree, the unlocking of advances. Of course, it needs to be "in full operation" and for this an investiture must be produced. With other possible elections in November, this may still take several months.

According to the criteria of The Trust Project

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  • Catalonia
  • Mariano Rajoy
  • Maria Jesus Montero
  • PSOE
  • State's general budgets

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