The resources of the financing system include 134,658 million from payments on account and 20,746 million from the 2022 settlement
The Ministry of Finance has set the deficit target for the autonomous communities in 2024 at 0.1% of GDP and next year the regions will receive the largest resources from the financing system in their history with 154,467 million euros, 14. 9% more compared to 2023.
This was announced this Monday by the fourth vice president and Minister of Finance and Public Function, María Jesús Montero, at the meeting of the Fiscal and Financial Policy Council (CPFF).
This deficit objective of 0.1% is one tenth more than that set in the April Stability Program sent to the European Commission, but it is the same percentage as that included in the 2024 budget plan, sent to Brussels in October.
However, that tenth of more margin for the autonomous communities will be assumed by the Central Administration next year, an exercise marked by the reactivation of European fiscal rules, suspended since 2020 due to the pandemic and later due to the impact of the war in Ukraine. .
Regarding the debt objectives, the communities will have to reach 21.7% of GDP in 2024, 21% in 2025 and 20.3% in 2024.
In addition, the Ministry of Finance has informed the autonomous communities that in 2024 they will receive the largest resources from the financing system in their history with 154,467 million euros. It is an increase of 14.9% compared to 2023, which means that they will receive almost 20,000 million euros more than last year to strengthen their public policies.
This figure includes the 134,658 million of payments on account, 8.3% more than in 2023, and the settlement of 2022, which amounts to 20,746 million, according to sources from the Ministry of Finance.
From the Department headed by María Jesús Montero, they have conveyed the Government’s “absolute” commitment to the financing of communities through a greater margin of deficit for 2024, to which are added the largest resources in its history to invest in health, education or social services.
MORE FLEXIBILITY ALSO FOR CITY COUNCIL
Local Entities will also benefit from this update of the reference rates in their subsector. Within the framework of the National Commission for Local Administration (CNAL), and at the proposal of the Ministry of Finance and Public Function, the path has been made more flexible so that corporations and other municipal administrations have to achieve budget balance, leaving behind 0.2 % surplus forecast for 2024.
The same is expected for 2025 and 2026, where a 0.1% and 0.2% surplus was expected respectively, with budget balance being set as the objective in both years.
This increase in the fiscal margin for local entities, as will occur in the case of the autonomous communities, will be assumed by the Central Administration. Which implies that the deficit target for 2024 in this area will go from 3% to 2.7%.
