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Fedea Report Reveals Deep Funding Inequities in Spain’s 2023 Regional Budget

Inflation coupled with payment volatility undercut nominal funding increases, prompting demands for a temporary equalization fund

Overview

  • Andalucía received €1.528 billion less than the average per adjusted population in 2023 according to Fedea analysis.
  • Murcia and Comunitat Valenciana recorded the lowest per capita financing at €3,215, nearly €200 below the national mean.
  • Wealthier regions contributed almost €24 billion above their own tax revenues, with Madrid alone providing €7.975 billion.
  • A 1.94 percent nominal funding increase was offset by 3.4 percent inflation, resulting in a slight real-terms decline.
  • Regional leaders are calling for an overhaul of the 2009 financing model and the creation of a transitional equalization mechanism.