Regional finances in 2019 and between 2003 and 2019

This report analyzes the evolution of regional income and expenditure, the budget balance of the sector and its debt stock from 2003 to the present, with attention to per capita expenditure at constant prices. The accounts for recent years are also analysed, highlighting the effect of some non-standard factors.

Key points

• Key points:
• Regional revenues and expenditures have followed an extremely pro-cyclical pattern, with strong growth during the expansion period, followed by deep cuts in the crisis and a gradual and uneven recovery that has ended returning us in 2019 to a situation similar in many respects to that observed in 2003 but also considerably more fragile in the face of a possible change of cycle.
• The main reasons for concern are the high stock of debt that most of the autonomous regions have accumulated; the fact that the improvement in the autonomous region's budget balance in recent years is partly based on anomalous factors that are difficult to sustain, including atypically low investment; and heavy interest subsidies through the FLA and other state liquidity mechanisms.

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