The fiscal consolidation process in Catalonia
The Government of the Generalitat of Catalonia is fully committed to the aim of fiscal stability. From the end of 2010 to the end of 2014, the Generalitat has reduced its deficit by 43%, from -4.48% of GDP at the end of 2010 to -2.58% of GDP in 20141 . In absolute values, the deficit of the Generalitat has fallen from ¤9,100m in 2010 to ¤-5,152m in 2014, a reduction of ¤3,948m.
The fiscal consolidation effort carried out by the Autonomous Communities has been significantly greater than that of the rest of the administrations. Between 2010 and 2014 the Autonomous Communities reduced their deficit by ¤16,758m, from -3.17% of GDP to -1.66%, while the Central Administration adjustment was ¤12,096m, from -5.62% to -4.60%. Local Corporations achieved a fiscal adjustment of ¤11,662m, from -0.56% to +0.53%.
The Autonomous Communities have borne 41,36% of the deficit adjustment made in 2010-2014, versus the 29.85% of the Central Administration and the 28.78% of the Local Corporations. The adjustment in Catalonia signified 9.74% of the entire adjustment obtained by the Spanish administrations as a whole, which is a percentage four points higher than the share of Catalonia to the total public spending.
Main fiscal adjustment measures
Between 2010 and 2014, Catalonia reduced its non-earmarked non-financial spending by 23.2% excluding interest on the debt, and 18.9% if it is included. The fiscal consolidation process has prioritized social spending: spending on Health, Education and Social Services fell by 15%, 18.9% and 19.1% respectively, while the rest of the expenditure fell an average of 34.9% (22.4% including interest). In this sense, the annex of this article contains a table that shows the variation of the expenditure of Public Administrations between 2010 and 2014.
The Generalitat of Catalonia has also reduced the number of its public sector entities by 25%, from 240 in 2011 to 180 in 2015.
Catalonia is the only Autonomous Community which has eliminated over three years (2012-2014) one of two extra monthly salaries to public employees; and, as regards technical and administrative temporary staff, there was an additional 15% reduction of the working day and salary.
In addition, with a view to increasing revenue, the Catalan Government has implemented an active policy of disposal and assignment of assets.
Thanks to the sustained effort to reduce its public deficit, Catalonia has also succeeded in considerably containing the pace of growth of its debt (see graphic of increase of the debt).
1 Provisional outturn
Source: Ministry of Economy and Knowledge
Source: Ministry of Economy and Knowledge
