10/28/2021 at 3:16 PM CEST
The Independent Authority for Fiscal Responsibility (AIReF) estimates that the deficit of the autonomous communities will be in 2022 at 0.6% of GDP, two tenths more than what is expected for 2021, according to the report that has been prepared on the fundamental lines of the 2022 Budgets of Public Administrations.
The body chaired by Cristina Herrero explains that the increase in the regional deficit forecast for 2022 is based on a fall in resources in 2022, excluding the effect of funds from the Recovery Plan, which is not fully compensated by the progressive withdrawal of measures related to the pandemic.
This forecast for 2022 coincides with the one included in the Government’s budget plan (deficit of 0.6%) and slightly more positive than that foreseen by the set of autonomous communities in 2021 (deficit of 0.7% of GDP).
The AIReF report reflects that regional resources would fall by around 2%, losing 1.6 points of GDP for the expected improvement in this year.
The institution’s forecasts also estimate a slight drop in spending over the previous year’s level, the reduction directly linked to Covid being largely offset by sharper growth in other expenses.
AIReF expects that in 2021 only two regions will exceed the deficit of 1.1% initially set for the autonomous communities. Regarding 2022, he estimates that Castilla-La Mancha, Catalonia, Murcia and the Valencian Community could close the year with a deficit higher than 0.6% of expected GDP for all the communities.
The body recommends that the CCAA adopt the necessary measures “to avoid that the fiscal space left by the withdrawal of the measures to fight the Covid and the positive evolution of income can be used to make structural spending that does not have a permanent source of funding “.