The forgiveness of Andalusia’s debt would be around 5.7 billion, according to Treasury technicians
In the absence of the new Government of Spain specifying the details in a draft law, the technicians of the Ministry of Finance (Gestha) estimate that the cancellation of part of the Andalusian debt would reach 5,697 million euros, as highlighted his advisor, Javier Gómez Vergel, during his appearance in the Parliament of Andalusia to report on the Budget Bill of the Autonomous Community of Andalusia for the year 2024.
Gestha estimates suggest that The State would forgive debt of 57,771 million euros to all the Autonomous Communities, Therefore, the amount that would be awarded to Andalusia would represent 10% of the total for all communities.
In this sense, Gestha has pointed out that the cancellation of regional debts by the State does not alter the figure of Spain’s public debt abroad because it is “a simple internal adjustment between public administrations, and the debt commitments agreed with the European Union”.
In this way, in an internal key, the communities would reduce a part of the interest cost and they would better achieve the deficit objective, and the State could be affected to a lesser extent if it needs to go into debt to make transfers to certain Communities so that they can cancel a part of the debts with third parties.
Recover the wealth tax
In another order of things, the Gestha advisor has proposed to the spokespersons of the Andalusian parliamentary groups the option of recovering the collection of the Wealth Tax lost due to the 100% bonus of the quota, approved by the Government of Andalusia on 20 September of last year, and that, on the other hand, the State is collecting with the Temporary Solidarity Tax of Great Fortunes (ITSGF) which is required of people with an individual net worth of more than three million euros when the Wealth Tax is subsidized. Isabel Díaz Ayuso has already taken this step in the Community of Madrid.
At this point, Gómez has explained to the Andalusian parliamentarians the measure approved by the Government of the Region of Murcia to raise the minimum exempt from the IP to a maximum of 3.7 million euros, without having approved any bonus. And it is that On the 7th of this month, the Constitutional Court endorsed the continuity of the Itsgf and the coalition government agreement wants to move towards a new taxation of wealth in the new regional financing system agreed upon in the Fiscal and Financial Policy Council, a body that brings together all the CCAA of the common regime.
financing agreement
Along these lines, Gestha proposes a new financing agreement based on the reports of the three groups of tax experts that have followed one another from 2014 to 2022, which propose that the regulatory capacity of the Autonomous Communities have a minimum and maximum margin of taxation for the transferred state taxes, with the purpose of preserving an acceptable level of equity and equality of taxpayers regardless of their place of residence.
Finally, Gómez Vergel has warned of the understaffing of civil servants of the Andalusian Tax Agency (Atrian) in view of the documents that accompany the Budget Project for 2024, a situation of which it already warned in the 2023 Budget.
