Catalan Budget and Deficit for 2010 and 2011

The Catalan Government's budget and the Spanish Government's investment within Catalonia are the subject of constant debate. Catalonia has a GDP per capita higher than the Spanish average. Therefore, considering regional solidarity, Catalonia brings more money to Spain's treasury than the money it gets back. However, many voices in Catalonia have complained that the difference between what it gives and what it gets back is too high. It is known as the fiscal deficit.

The Spanish Government has recognised an annual fiscal deficit between 6% and 9% of Catalonia's GDP (depending on the calculation formula), although some studies in Catalonia set the fiscal deficit between 8% and 12%. A fiscal deficit of 9% means that Catalonia gives around 18 billion euros per year to the rest of Spain.

The Catalan Government had a public deficit of 4.2% in 2010, some 8.3 billion euros. For 2011, the Catalan Government expects a deficit of 2.66%, representing some 5.4 billion euros.

However, the Spanish Government owes more than 2.2 billion euros corresponding to the 2011 budget that it refuses to pay. The Catalan Government has already cut its expenditure by 10%, but stated it cannot go further without affecting the Welfare State's basic services. The Autonomous Community governments are in charge of public healthcare, education and social services, and manage some 40% of Spain's entire public expenditure. If the Spanish Government pays the Catalan Executive the money for the annual Competitiveness Fund (1.45 billion euros) this 2011, as well as the legal compensation for a recognised historical lack of investment in Catalonia (between 0.8 and 1.2 billion euros this year), Catalonia would be only lacking 200 million euros to reach the 1.3% deficit objective for 2011. The Catalan Government expects the Spanish Executive to fulfil its legal obligations and pay for what it owes according to the law. In addition, Barcelona expects some institutional loyalty by Madrid and the transfer of some real estate assets that would compensate this remaining 200 million euros.

Some key figures:

- On average, Catalonia's fiscal deficit represents 9% of its GDP each year, some 18 billion euros.

- The Catalan Government is responsible for some 40% of public expenditure, and is in charge of healthcare, education and social services.

- The Autonomous Communities are responsible for 17% of Spain's public debt.

- In 2010, Catalonia had a public deficit of 4.2%, representing around 8.3 billion euros.

- In 2011, the Catalan Government has forecasted a maximum public deficit of 2.66%, which could be drastically reduced if the Spanish Government pays for two items that it legally owes but refuses to pay in 2011.