Fedea report highlights funding disparities among Spanish regions

A report by the Foundation for Applied Economics Studies (Fedea) has identified significant equity issues regarding the financing of unique regional competencies in Spain. Based on 2023 data, the report highlights extreme disparities between autonomous communities.

Catalonia received the highest amount for managing unique competencies, totaling 3,563 million euros, which equates to 450 euros per inhabitant. This is nearly two and a half times the average for common regime communities, which stands at 185 euros per inhabitant. Other regions with higher per capita allocations include Cantabria (320 euros) and La Rioja (318 euros).

In contrast, communities with minimal unique transfers include Castilla-La Mancha (8 euros per inhabitant), Castilla y León (9 euros), and Extremadura (11 euros). Fedea's director, Ángel de la Fuente, warns that these inequalities are ‘practically invisible’ to the public because the Ministry of Finance does not regularly publish detailed data. The report also criticizes the current ‘historical cost’ methodology for producing inconsistent valuations for the same services across different territories.