Consell calls for a system that guarantees equal financing per capita and compensation for underfunding to the CCAA

 

 

Vicent Soler en imagen de archivo

 

In the allegations, the Consell intends to correct the “biased vision” and the “omission” of “broad consensus” on “key issues” by the autonomous communities in the document sent by the ministerial department. The Generalitat reproaches that the text of the Ministry describes “repeatedly” the differences while “eludes” point out the “very majority consensus” between the autonomies on issues such as the guarantee of sufficiency, the requirement of vertical re-balancing of resources between the central administration and the CCAA, the simplification of the model or compensation for errors in the application of the system between 2009 and 2017.

In addition, it reproaches the Ministry that the document is “inexplicably inconcrete” regarding the position of the General State Administration in most “essential” aspects that require the configuration of a new model of regional financing.

“We have done the work that the Ministry of Finance has not done: present a document that includes those conclusions that in the course of the work have had very high consensus levels and that have not been reflected as such, as well as others that, without achieve these broad support, they have been endorsed by a majority of communities, “said in a statement the Minister of Finance and Economic Model, Vicent Soler, who has accused the Government of not having done their duties.

The allegations presented by the representatives of the Valencian Community in the CTPE, José Antonio Pérez and Rafael Beneyto, highlight the “broad agreement” and the “clear evidence” provided by the data and the Report of the Experts of July 2017 on the financial insufficiency suffered by the communities to attend the fundamental public services of health, education and social protection in the period 2009-2015.

This insufficiency, according to the Consell, reached 25,000 million in some years and in the last year liquidated, 2015, it stood at 16,500 million. This gap led to a reduction in spending on “essential” services of 9%, which in the rest of the competencies was 30%.

Therefore, “it is essential that the new system allows the sufficiency principle to be met and that the financing capacity of the system meets, at least, the coverage of real regional spending on health, education and social protection at the level of needs”. To do this, at least the gap recorded in the last year liquidated and that was 16,500 million should be recovered.

MORE TRIBUTES DEPOSITED

According to the Consell, this objective of sufficiency “can be achieved through a recovery and / or expansion of the real participation of the communities in the shared taxes, an extension of the ceded taxes or a greater volume of vertical transfers”.

The Generalitat sees “feasible to reconsider the percentage of participation of the Communities in Income Tax, VAT and Special Taxes and the possibilities of transfer of new taxes as ways to expand the fiscal space of the Communities.” The proposed new model of the Consell raises, among other issues, to expand the participation in VAT from 50% to 70% and special taxes, from 58% to 70%.

It also calls for the new financing system to achieve a “full equalization” in the coverage of the needs of the citizens of the autonomous communities and in the resources allocated to each of them for financing “all in homogeneous terms and normative. “

The Consell warns that “not to pursue this objective, nor to turn it into the lever of the reform, can only lead to the immediate reproduction of the new model, the criticisms and the dissatisfaction with its application, and reactivate the proposals for the realization of new reforms in the system “.

“With the extension of sufficiency and the application of the principle of full equity it is feasible to correct practically all of the existing inequities and, at the same time, respect the current funding of all Common System Communities”, maintains the Generalitat.

ADDITIONAL STATE CONTRIBUTION

However, if this leveling is carried out during a “transitory” period and there is a difference for certain communities, the Generalitat believes that “a Guarantee Fund should be provided with the nominal status quo financed by an additional state contribution” to correct it.

The document presented by the Consell also reflects that more than half of the communities present in the CTPE have been in favor of supporting the compensation of part of the regional debt, based on the fact that, to a large extent, they do not originate there is an excess of expenditure but a lack of income, a very relevant circumstance to assess the moral risk of compensation “.

“The total amount to be transferred to reduce the live volume of debt at the individual level would be an equal percentage for all communities as a consequence of the insufficient resources suffered to finance the SPF in the period 2009-2016,” the text states.

Similarly, he adds that some communities “financially discriminated” in the past have also stated that if there is no specific compensation for their debt, “they will drag the effects of the injustice suffered and it is not realistic to think that these over-indebted communities can return to the medium-term market, taking into account how the financial industry works “.

COMPENSATION IN TWO SECTIONS

In this way, the compensation, for the Consell, would occur in two sections: one, general, for all the autonomies, and a second, specific, to serve the communities that have had fewer resources than the average and that, as the Comunitat Valenciana, have spent below the average. The Generalitat claims to the ministry that all the documents provided by the communities appear as an annex to the final report and will present particular votes to Este to detail its specific position in this regard.

Other aspects contained in the document of allegations make reference to the claim of the communities in the CTPE that the regional funding of the situations of extension of the General Budgets of the State be dissociated, as well as that the Government improve the information on the calculation of deliveries on account.

Posted in Uncategorized