they would keep 45% of the new funds

The reform of the regional financing system that the Government has agreed with ERC would allow communities to receive 20,975 million euros more in 2027 of those who receive with the current system. 45% of these new funds would go to Andalusia and Catalonia, the two autonomies that would obtain the most extra income with the new model and which are home to 34% of the country’s population.

The community that obtains the most additional funds with the proposal formulated by Montero is Andalusia, one of the worst treated under the current system, to whom the system would grant 4,846 million euros more compared to the current model. follows closely Cataloniawith 4,686 million additional and greater distance Valencian Community —one of the underfinanced communities— that would pocket 3,669 million more than what it would obtain with the current regulations. In fourth place is the Community of Madrid, which would receive 2,555 million more.

The following autonomies that gain the most with the new model are Castile-La Mancha (1,248 million) and Murcia (1,188 million), two other territories that are currently doing the worst in the distribution of resources per inhabitant of the country. Behind them, and already below 1,000 million, are Aragon (629 million), Canary Islands (611 million), Galicia (587 million), Balearics (412 million), Castile and León (271 million), Asturias (248 million) and Rioja (25 million).

The proposed reform would leave Cantabria and Extremadura, two of the autonomies best treated by the current system, out of these new resources. However, to prevent these territories from improving their position, the Government proposes benefiting them through the Interterritorial Compensation Fund (FCI), a mechanism that is currently outside the regional financing system. By this way, Extremadura would receive an extra 216 millionwhile Cantabria 46 million would correspond to it.

The first vice president and Minister of Finance, María Jesús Montero, presented this Friday the reform of the regional financing system, the first major one presented since the current system came into force in 2009.

The new model proposes ceding a greater percentage of VAT and personal income tax collection to the autonomous communities; introduces changes in the adjusted population (an indicator that reflects the number of inhabitants according to their needs for public services); It reduces the differences between the communities that receive the most resources per inhabitant and aims to speed up payments on account to the territories, among other measures.