Spain | 2024 settlement of the financing system for autonomous communities

Summary

This Working Paper analyzes the 2024 settlement of the financing system for Spain's common-regime autonomous communities. It calculates the definitive financing for homogeneous competences, which grew by 9.45% compared to 2023. It also quantifies interregional redistribution flows and the evolution of resources until 2027.

Key points

• Key points:
• In 2024, the relative positions in financing per adjusted inhabitant show moderate changes. The Balearic Islands fell by 3.7 points, while Aragon and Madrid advanced the most, gaining 1.1 points each.
• In 2024, the financing system provided almost €24.65 billion to lower-income communities. Of this amount, €13.25 billion came from the State and €11.4 billion from Madrid, Catalonia, and the Balearic Islands.
• System resources on a cash basis are expected to grow strongly in 2024 (14.7%), stagnate in 2025 (2.5%), and rebound in 2026 and 2027 with rates between 7% and 9%.
• Contributions to regional leveling in 2024 represent about 26% of Madrid's tax revenues, and between 7% and 8% in the cases of Catalonia and the Balearic Islands.

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