Herrera presents the accounts of 2018
In this sense, the regional chief executive has once again claimed the need to address the reform of the regional financing system that accounts for 60 percent of the total budget of the Community (10,859 million euros in 2018) to guarantee the essential core of the great public services and the effective equality of access of all Spaniards without being penalized by the place of residence.
Herrera recalled that following the preparation of the report of the Committee of Experts created by the Government it is now the turn to convene the corresponding meeting of the Fiscal and Financial Policy Council (CPFF), a “necessary” process in spite of the ” uncertainties “that the country is experiencing due to the” very serious irresponsibility “of Catalonia, which, it has also admitted, does not allow for being too optimistic about a rapid advance on this issue.
“The model is still insufficient”, Herrera has reaffirmed in the presentation on Wednesday of the draft Community Budgets for the year 2018 that puts deliveries on account in 6,480.91 million euros, an “important” 6.21 a hundred more that, as he has also reiterated, highlights the economic moment the country is experiencing and which he hopes will continue despite the “complicated situation” caused by the Catalan crisis.
As clarified, those 6,480.9 million euros do not include the 73.9 million that the Board has to return each year for the negative settlements of the years 2008 and 2009 and has also highlighted the positive contribution for the liquidation of the year 2016 with a “significant increase” of 57.3 percent (395 million) due to that economic recovery and the employment to which he has referred throughout the presentation of future accounts.
The main ingredient of the deliveries to account is the VAT, which will enter the regional coffers a total of 2,064.1 million euros, a 5.48 percent more, while the IRPF will contribute 1,810.6 million, with a decrease of 1.86 percent for the exemptions from January 1 to the lowest rents announced by the Minister of Finance and Public Administration, Cristóbal Montoro.
In addition, the contribution of Special Taxes will rise by 5.45 percent to 962.8 million euros, to which 606.5 of the Hydrocarbons will contribute in an essential way, with a growth of 8 percent, and a 2 percent more for tobacco, both linked to consumption and that greater economic activity, the president reiterated.
Finally, the Fundamental Public Services Guarantee Fund will experience an increase of 94 million, an 11.7 percent “also very important”, to reach 897.4 million euros, and the Sufficiency Fund rises 4.5 percent up to 424.7.
THE COLLECTION IS MAINTAINED BY OWN TAXES
In second place are the budget revenues for the traditional and own taxes that the Board manages, which maintains the collection trend of previous years with a slight increase of 0.16 percent to 755.8 million euros.
In the specific case of Inheritance and Donations will contribute 200 million with a “slight increase” of 2.04 percent and another 195 million
they will arrive from the Patrimonial Transfer Tax, which maintains the collection of 2017, unlike Documented Legal Acts, which will decrease by 9.09 percent to 100 million euros.
Herrera has confirmed that Castilla y León will charge for the seventh consecutive year the Wealth Tax, which will raise 38 million from the income of those who have more, and has announced that the Tax on the Environmental Impact of Certain Facilities includes an estimate of collection of 10 million euros out of a total of 74 million (64 in 2017) to tax the impact of radioactive waste of a temporary nature due to the closure of Garoña.
The tax on gaming activities will enter 70 million, as in 2017, while in the concept of other rates a fall in revenue of 9.47 percent is foreseen to 30.10 million euros.
Finally, the Community will receive 2,112.1 million in transfers from the State, mostly of a finalist nature, and from the EU, 2.62 percent more than this year, of which 924.4 are associated with the Common Agricultural Policy (CAP), with a slight increase compared to the traditional 923 million euros.
They are followed by the 635.4 million euros of transfers of all kinds, which account for 4.6 percent, and 280.3 million for public prices, services, reimbursement of operations and income, among other things. with 1.70 percent more. In addition, 272 million euros of European funds are contemplated with a “notable” increase of 8.3 percent in the middle of the 2014-2020 programming period, whose Operational Programs (OP) are approved.
The implementation of the operational programs of the European Regional Development Fund (ERDF) and the European Agricultural Fund for Rural Development (EAFRD) will also be promoted, which rise by around 12% and 8.5%, respectively, while that of the European Social Fund (ESF) decreases 1.75 percent.
Herrera recalled in this regard that the lower rates of co-financing of these programs require more regional funds to finance these activities.
Lastly, there are the financial operations, which add 1,510.4 million euros, 9.55 percent more, for a “very important increase” of 42.5 percent in the replacement debt, which will be 1,113.8 million in line with the amortization schedule but with a neutral effect on the budget, the president clarified.
For its part, the new indebtedness will amount to 314.8 million euros, 25.5 percent less, as a result of the adjustment to the deficit of -0.4 percent. The accounts contemplate 46.7 million as refunds (-62.56 percent), of which 45 derive from the return by the companies of credits that were granted in their day.
The remaining 35 million euros are loans from the European Investment Bank (EIB) granted to the Ministry of Economy and Finance to support projects of entrepreneurs and energy efficiency through the Financial Shuttle.