Zimo Puig puts Valencian debt on the brink of abyss

The Foundation for Applied Economics Studies (Fedia) has published a detailed report on the state of finances of autonomous communities at the end of 2021 and their development between 2003 and 2021. Among them, the worst hit by far is Valencia, which has a worryingly close to 50% debt to GDP.

As analyzed in the report, Autonomy who have borrowed the least are between 2003 and 2021 madrid, canary islands and foral community (Basque Country You Navara, which is the most they have been marcia, Catalonia, Castilla La Mancha and, above all, the above Valencia, Between 2003 and 2021, the debt load has multiplied by 12.5 in Castilla La Mancha and by about 2.4 in Madrid and Galicia.

In 2021, Zimo Puig’s government borrowed more than 3,013 million euros, reaching 53,820 million, 5.9% more than at the end of 2020, according to data from bank of spain, Last year’s growth was higher than the previous year in which the pandemic was recorded.

The case of Valencia is the most critical, but the Fedia report suggests that the general situation is not much better.

The study begins with the year 2003 as it was the first in which all autonomous communities managed health care during the entire fiscal year. There hasn’t been much weight transfer in terms of later financial endowments. In this period between 2003 and 2021, sectoral income and expenditure have grown strongly in a period of expansion and have been sharply cut since the 2008 crisis. 2019 to one Situation similar in many respects to what was seen in 2003, but also much more fragile before the possible change of cycle», says the Fedea report.

“The main reasons for concern are High store of debt who have accumulated most of the autonomy and the fact that improve budget balance Based on the part registered in recent years odd and barely sustainable factorsIncluding an unusually low investment and strong interest subsidy through the FLA (Autonomous Liquidity Fund) and other state liquidity mechanisms,” they add.

The advent of the pandemic has resulted in increased spending, financed from state and European resources. “What is striking is that the additional income has exceeded the new spending needs, which has allowed Autonomy to reduce its deficit compared to previous years until it is practically eliminated in 2021. 2008 In -09, the government has chosen to protect maximum autonomous communities to face the immediate effects of the crisis, which This is not necessarily a good idea if it greatly delays the response to these,

Therefore, the position of the communities is, according to Fedya, vulnerable, as they have enjoyed an abundance of wealth which may have prevented them from progressing to their true position.