Spain | Government proposal for regional financing reform

Summary

Building on the analysis initiated in a previous study, the Working Paper describes and assesses the new elements of the Government’s proposal to reform the SFA contained in the draft agreement sent to the Autonomous Communities several weeks ago.

Key points

• Key points:
• These new elements relate primarily to the details of how the standardized tax revenues from devolved taxes and the adjusted population are calculated, as well as to the funding of specific regional responsibilities.
• They also concern the design of the status quo clauses and certain changes to the system of advance payments and final settlements.
• In addition, the author views many aspects of the proposal favorably, but suggests, among other things, that status quo compensation should be temporary and that healthcare and education should be given significantly greater weight in the calculation of spending needs.
• To read the previous work referred to in the Abstract, access it here.

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