Spain | Regional financing in 2020: first approach and proposal for 2021

Summary

This Working Paper establishes some preliminary estimates of the funding received by the autonomous communities under the common system during the 2020 financial year, highlighting the differences in the evolution of autonomous financing during the previous crisis.

Key points

• Key points:
• Since official data will not be available until the 2020 payments from the Autonomous Financing System (AFC) are published (probably in July 2022), it may be of some interest to present a first approach to this data to give us an idea of how the system has responded to the severe shock resulting from pandemic.
• The information provided here also covers the extraordinary resources that the central government has provided to help the autonomous communities deal with the financial effects of the health crisis. It may also be useful in assessing possible alternatives to the criteria used to allocate such funds and, in particular, the share of these funds not linked to specific extraordinary spending caused by COVID-19.
• In its final part, the proposal to establish a temporary equalization fund to supplement the financing of the worst-funded communities is further strengthened while addressing the necessary reform of the Autonomous Funding System.

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