The fiscal drainage of Catalonia


NúriaBosch

Catalonia suffers from a significant fiscal drainage towards Spain in the form of a large fiscal deficit. This is the difference between the Central Government’s public sector spending in Catalonia and the resources extracted from this Autonomous Community, mainly through taxation, by the Central Government.

Fiscal deficit data, all calculated using the same methodology, is available from 1986 until 2011. The average for 1986-2011 is 8% of GDP with a standard deviation around this average of only 0.9. Therefore, one can speak of a structural fiscal deficit that affects the Catalan economy recurrently.

This fiscal drainage is an important obstacle for the Catalan economy. The consequences are that it discourages growth and reduces welfare for the Catalans.

By Núria Bosch, PH., Professor, Faculty of Economy, Barcelona University

Font: Vilaweb, 20 juliol 2014
http://www.vilaweb.cat/analisi/4204618/the-fiscal-drainage-of-catalonia.html [Consulta: 14-11-14]

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