Catalan Government Budget 2013

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Catalan Government Budget 2013

Source: Generalitat de Catalunya

Date: 2013.

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Catalan Government Budget 2013

  1. 1. Budget 2012 2nd stage of the fiscal consolidation plan based on the principles of austerity, prioritization of social spending, credibility and joint responsibility 2
  2. 2. Budget 2011 and 2012 guidelines  Austerity: guarantee public finance sustainability in the short term (Budget 2011 and 2012) and in the long-term (Bill of Budgetary Stability of Generalitat) Sumari  Prioritization of social spending: maintain main services of the welfare Marc macroeconòmic Dades only on dels pressupostos state. Efforts can not focusedbàsiquesexpenditure Eixos i polítiques Anàlisi dels ingressos  Credibility: adjustment planned for two years. In 2011 Budget efforts were Anàlisi de les despeses focused on expenditure and in the 2012 efforts are focused on both, revenue and expenditure  Joint responsibility: Catalan Government efforts must be accompanied by efforts of other stakeholders (Central Government, public employee and citizens) Budget Features 3
  3. 3. Generalitat’s Budget key numbers Millions of euros Generalitat Budget(1) General fund nonfinancial expenditures (in ESA terms)(2) Public Sector Budget (3) Expenditures financed by general funds Expenditures financed by earmarked funds Non-financial expenditures of the rest of public sector Subtotal non-financial expenditures (chapters 1 to 7) Financial assets (chapter 8) Subtotal non-financial expenditures and financial assets (chap. 1 to 8) Financial liabilities (debt repayment - chapter 9) 23,559 3,660 -27,219 834 28,053 1,675 23,559 ------- 23,559 3,660 4,055 31,274 2,257 33,531 3,494 Total expenditures (chapters 1 to 9) 29,727 -- 37,024 Non-financial deficit of PA-ESA entities (4) Capital contributions to non-PA-ESA entities equivalent to capital transf. General fund non-financial expenditures (in ESA terms) 245 138 23,942 (1) Government: 12 departments, 6 high bodies and 5 non-departamental funds (2) Non-financial expenditure in terms of ESA (European System of National and Regional Accounts ESA 95) includes chapters 1 to 7, capital contributions (chapter 8) to finance deficits of PA-ESA entities and capital contributions to non PA-ESA entities assimilated to capital transfers. General-fund indicates that expenditure financed by earmarked revenue is excluded. This amount is the one taken into account (previously adjusted) to ensure compliance with the objective of budgetary stability. (3) Public sector: more than 227 entities in which the Government participates directly or indirectly all or a majority on their governing bodies. (4) Is the aggregate result of 192 entities classified as Public Administration entities in ESA terms (PA-ESA). Budget Features 4
  4. 4. Generalitat’s Budget key numbers Millions of euros Generalitat Public Sector Budget €37,024 m Generalitat of Catalonia Budget ESA adjustments: General fund non-fin. expenditures (ESA terms)* €23,942 m Non-financial deficit 192 PA-ESA entities = €245 m + Capital contributions to non- PA-ESA entities equivalent to nonfinancial expenditures + General fund non-financial expenditures Own resources and debt of the rest of Public Sector (227 entities) €29,727 m €7,297 m Debt repayment €23,559 m €138 m €1,675 m Earmarked funds €3,660 m Loans and capital contributions €834 m *Expenditures to be adjusted in order to assure the deficit goal achievement in ESA terms. Budget Features 5
  5. 5. Government deficit and debt Outturn and budget values in ESA terms (% of GDP) Debt (%GDP) Deficit (%GDP) 12 10 19.0 +4.3 25 19.8 20 16.7 8 +2.7 6 +2.2 4 2 +0.8 +2.3 7.4 7.7 8.1 7.6 15 12.4 9.7 10 7.5 0 -2 5 -0.73 -0.39 -0.45 -0.22 -0.62 -1.30 -2.60 -4 -2.41 -2.6 0 -4.22 -6 -5 2003 Outturn 2004 Outtrun 2005 Outtrun 2006 Outtrun 2007 Outtrun Deficit 2008 Outtrun 2009 Outtrun 2010 Outtrun 2011 Budget 2012 Budget Debt Source: Bank of Spain, Ministry of Economy and Finance, National Institute of Statistics (INE) and Department of Economy and Knowledge. Budget Features 6
  6. 6. Achievement of the deficit goal in 2012 Deficit in ESA terms (% of GDP) 0 -1 -0.22 -0.62 -1 -1.10 -1.00 -1.30 -2 -2 -3 -2.41 -2.60 -2.66 -3 -4 -4 -4.22 -5 2006 Outtrun 2007 Outtrun 2008 Outtrun 2009 Outtrun 2010 Outtrun 2011 Budget 2012 Budget 2013 2014 CPFF1 goals 2012-2014 1Council for Fiscal and Finance Policy. Source: Department of Economy and Knowledge and INE. Budget Features 7
  7. 7. Commitment to reduce the deficit in two years Amounts in millions of euros Over a period of two years the deficit will be reduced by 5,611.8 M€ (-67.2%) M€ % GDP Deficit 2010 (outturn) 8,352.0 2,740.2 1.30 Var. % 4.22 Deficit 2012 (budget) Var. M€ -5,611.8 -67.2 Budget Features 8
  8. 8. Continuity of the budgetary adjustment  Fiscal adjustment has been programmed over a period of two years (instead of just one), otherwise essential services of the welfare state could have been deteriorated Sumari  Fiscal consolidation Marc macroeconòmic efforts continue in 2012, but not exclusively by the Dades bàsiques dels pressupostos expenditure side Eixos i polítiques Anàlisi dels ingressos  Further efforts mustAnàlisi de les despesesrevenue side, from the public be enabled in the employee, and from the citizenship in order to keep the quality of public services  Generalitat will conduct an active policy of selling public assets Budget Features 9
  9. 9. Revenue mesures  Increase the tax on retail sales of certain hydrocarbons (regional part), with tax deductions for certain groups Sumari  Creation of a tourist accommodation tax Marc macroeconòmic Dades bàsiques dels pressupostos  Rise the tax on documented legal acts, with tax deductions linked to Eixos i polítiques non-recourse debtAnàlisi dels ingressos mortgages Anàlisi de les despeses  Maintenance of the highest income tax rates in personal income tax  Maintenance of wealth tax (temporarily reestablished by Central Government) Budget Features 10
  10. 10. Efforts by users of public services  Increase the water canon to assure water supply and purification. Includes support measures to vulnerable people Sumari  Fees increase to Marc macroeconòmic sustainability of certain public assure the financial Dades bàsiques dels pressupostos services Eixos i polítiques Anàlisi dels ingressos  Fee on pharmaceutical prescriptions to avoid overuse and abuse, with Anàlisi de les despeses little collecting impact, but with a potential dissuasive effect Budget Features 11
  11. 11. Budget 2012 revenue mesures In millions of euros M€ Wealth tax (temporarily reestablished by Central Government) 240.4 Tax on retail sales of certain hydrocarbons (regional part) (tax rate increase) 130.0 Tourist accommodation tax (creation) 100.0 Fee on pharmaceutical prescriptions or health products (creation) 100.0 Personal income tax (maintenance of tax rates for the highest income brackets) 73.5 Tax on documented legal acts (tax rate increase) 72.5 Fees increased above the general increase 4.0 Tax measures 720.4 Real assets disposals and concessions (buildings and other real investments) 888.2 TOTAL 1,608.6 Budget Features 12
  12. 12. Generalitat’s non-financial revenues In millions of euros Concepts Budget 2011 Budget 2012 Var. 2012 / 2011 M€ Inheritance and donations tax Wealth tax Tax on transfers and documented legal acts Gambling taxes Energy tax Vehicle registration tax Tax on retail sales of certain hydrocarbons Totally devolved taxes Personal income tax (regional share) VAT (share of Spanish central government tax) % Taxes on tobacco, alcoholic drinks and hydrocarbons (advances of tax shares) Partially devolved taxes 288.6 -1,286.6 308.3 279.3 110.0 280.4 2,553.2 8,055.9 4,619.0 2,072.5 14,747.4 197.6 240.4 1,221.1 254.0 311.1 114.2 390.0 2,728.4 7,842.8 5,550.2 1,964.0 15,356.9 -91.0 240.4 -65.5 -54.3 31.8 4.2 109.6 175.2 -213.1 931.2 -108.6 609.5 -31.5 --5.1 -17.6 11.4 3.8 39.1 6.9 -2.6 20.2 -5.2 4.1 Total devolved tax revenues Global Sufficiency Fund (advance) Fundamental Services Guarantee Fund (advance) 1 Rest of resources of the funding system 2 2008 and 2009 funding system pending settlements 2010 funding system pending settlement 17,300.6 1,840.0 -1,460.0 102.0 -138.1 -- 18,085.4 1,765.1 -1,065.5 91.0 -633.8 1,090.3 784.8 -74.9 394.6 -11.0 -495.6 1,090.3 4.5 -4.1 -27.0 -10.8 358.8 -- Subtotal funding system revenues3 17,644.4 19,332.5 1,688.1 9.6 1 Includes specific funds to improve health system settlement from the financing model for 2008 is -690.7M€ (-138.1M€ per year for 5 years) and the total amount for 2009 is -2,478.1 M€ (-495.6 M€ per year for 5 years). 3 Figures for the advancements from the funding model for 2012 are the ones provided by the Central Government last July. 2 Total Budget Features 13
  13. 13. Generalitat’s non-financial revenues (continues) In millions of euros Concepts Budget 2011 Budget 2012 Var. 2012 / 2011 M€ Subtotal funding system revenues % 17,644.4 19,332.5 1.688.1 9.6 2,670.2 2,670.2 0.0 0.0 Tourist accommodation tax -- 100.0 100.0 -- Fee on pharmaceutical prescriptions or health products -- 100.0 100.0 -- Real assets disposals and concessions (buildings and other real investments) 200.0 888.2 688.2 344.1 Infrastructures agreements. 3rd additional provision of Statute of Autonomy of Catalonia 671.8 219.0 -452.8 -67.4 Central Government’s transfers to finance specific programs 773.7 689.5 -84.2 -10.9 European Union transfers 107.0 91.9 -15.1 -14.1 Rest of fees and taxes 157.0 164.9 7.9 5.0 80.5 76.6 -3.9 -4.9 Subtotal non-funding system revenues 4,660.3 5,000.4 340.1 7.3 Total Generalitat non-financial revenues 22,304.7 24,332.9 2,028.2 9.1 Total general fund non-financial revenues 18,684.1 20,672.6 1,988.6 10.6 3,620.7 3,660.3 39.6 1.1 Local Governments share of Central Government’s Revenues Rest of non-financial revenues Total earmarked non-financial revenues Budget Features 14
  14. 14. Accuracy in forecasting revenues In M€ Initial estimates and outturn of totally devolved taxes1 7.000 6,320 6.000 5,829 5,590 4,811 5.000 5,214 4,020 4.000 3,232 5,083 4,173 4,488 3,364 3,802 3,592 3.000 2,394 3,077 2,824 2.000 2,288 2,767 2,359 2,191 2,286* 1.000 0 2002 2003 2004 2005 2006 Budget 2007 2008 2009 2010 2011* 2012 Outturn 1Inheritance and donations tax, tax on large commercial establishments, tax on capital transfers and documented legal acts, vehicle registration tax, tax on retail sales of certain hydrocarbons and gambling taxes. *2011 Estimation using available data until October. Source: Department ofEconomy and Knowledge. Budget Features 15
  15. 15. Expenditure measures  The increase in debt interest payments and deferred payment methods for investments increase the need for adjustment of other expenditures  The adjustment is not linearly distributed between departments and it is taken into consideration the joint effort over the two-year period (2011 and 2012)  Social spending is prioritized, maintaining its share in the total Budget 2012  Measures to promote economic recovery  Special efforts in the public employee expenditures Budget Features 16
  16. 16. Non-linear distribution of general fund non-financial expenditures (in ESA terms) by departments(1) In millions of euros Budget 2011 Section Budget 2012 Var. 2012 / 2011 M€ M€ M€ % Presidency 536.2 472.9 -63.3 -11.8 Governance and Institutional Relations 325.4 307.3 -18.1 -5.6 Economy and Knowledge 1,213.8 1,101.6 -112.2 -9.2 Education(3) 4,834.2 4,595.9 -238.3 -4.9 8,978.9 8,546.1 -432.7 -4.8 1,144.6 1,088.2 -56.4 -4.9 1,362.8 1,564.5 201.7 14.8 Culture 282.3 267.9 -14.4 -5.1 Agriculture, Livestock, Fisheries, Food and Nat. Environ. 367.2 340.7 -26.5 Var. 2012 / 2010 -7.2 Health (3)(4) Home Affairs (3) (2)(4) Territory and Sustainability Social Welfare and Family M€ These savings will be especially significant in the departments of Health, Education, Home Affairs and Justice -204.7 -30.2 -103.0 -25.1 -389.4 -26.1 -626.8 -12.0 -1,053.5 -11.0 -134.5 -11.0 -228.8 -12.8 -66.5 -19.9 -138.4 All departments will add some resources generated by saving measures in employee wages, from new taxes and from the effect of the 2011 savings measures’ recurrence. % -28.9 -212.5 -10.9 -218.9 -28.7 -114.4 -11.4 -3,491.3 -14.0 1,746.5 1,728.5 -18.0 -1.0 586.3 542.6 -43.7 -7.4 911.7 886.8 -24.9 -2.7 22,289.9 21,443.0 -846.8 -3.8 1,482.6 1,999.9 517.2 34.9 879.7 78.5 Higher bodies and others 95.0 84.6 -10.4 -11.0 -20.5 -19.5 Non-departmental funds 245.0 414.3 169.3 69.1 23.2 5.9 24,112.5 23,941.8 -170.7 -0.7 -2,609.0 -9.8 Enterprise and Labour Justice (3) Subtotal departments Debt(interests) Total 1 See note 2 on page 4 change percentage of the budget of Department of Territory and Sustainability is 15.5% when credits for deferred payment methods are excluded 3 Departments of Education, Health, Home Affairs and Justice will add resources generated by the savings generated in employee compensation. 4 Department of Territory and Sustainability and Departament of Health will have extra funds from new taxes and fees created over 2012. 2 The Budget Features 17
  17. 17. Social expenditure is maintained as a priority In millions of euros General fund non-financial expenditures in ESA terms1 Health + Education + Social Welfare and Family (% over total departments) Health + Education + Social Welfare and Family (% over total departments, excluding Territory and Sustainability) 1 See Budget 2010 Budget 2011 Budget 2012 67.2% 69.8% 69.3% 72.4% 74.4% 74.8% note 2 in page 4 Budget Features 18
  18. 18. Supporting economic recovery and boosting productive economy  Continuity of the ICF (credit) programs approved in mid 2011 which started in the last months  Reduction of the Generalitat’s deficit decreases the need for Government borrowing and promotes the availability of credit to the private sector  Research, development and innovation stimulus policy, with special focus on innovation  Change in vocational training model to make it more flexible to the needs of productive sectors Budget Features 19
  19. 19. Public employee measures  Repetition in 2012 of personnel wage reductions of high-ranked officials and Generalitat’s public sector assimilated, equivalent to an extra month salary  Reduction of public employee compensation  Social Action Fund (reduction of 50% in 2011) and suspension of meal vouchers Marc macroeconòmic accompanied with work flexibility measures  Sumari Dades bàsiques dels pressupostos Eixos i polítiques Suspension of productivity bonus and 50% reduction of the maximum amounts to be paid Anàlisi objectives incomes employee of Catalan Healthcare during 2012 in management by dels ingressos Anàlisi de les despeses Institute  Maintenance of suspension of contributions to pension plans  Other personnel measures (reduction in vacancies and days off, etc) Estimated impact : 625 M€ Budget Features 20
  20. 20. Evolution of budgeted and actual interest expenditures1 In millions of euros 2.500 1,994.3 2.000 1,477.9 1.500 1,477.12 1,18.7 919.2 1.000 808.5 678.7 500 440.7 480.4 491.2 504.7 796.6 696.9 570.3 561.1 0 2005 2006 2007 2008 Budget Interest expenditures increase in Budget 2012: 2009 2010 2011 2012 Outturn Over Budget 2011 Over Outturn 20112 Over Outturn 2010 516.4 M€ 517.2 M€ 1,075.2 M€ Aministration. The overall budgeted public sector interest expenditures for 2012 are €2,443.6 m. forecast by the Department of Economy and Knowledge. Source: Generalitatt’s Budget 1Generalitat 2Outturn2011 Budget Features 21
  21. 21. Future payments linked to investments made using deferred payment methods Amounts in millions of euros 20111 2012 2013 2014 2015 0.0 82.4 317.9 114.2 60.3 20.0 184.9 46.6 48.0 0.0 0.0 82.6 10.4 0.0 0.0 64.5 83.7 117.8 134.4 136.3 Land rights in Equipaments i Edificis de Catalunya SAL 109.6 141.5 131.9 135.6 139.4 Infrastructures and equipments concessions 110.8 222.1 270.4 308.0 311.8 Underground line 9 stations concessions 57.9 134.0 217.0 233.8 240.8 Other underground line 9 finance methods3 87.0 48.9 78.0 88.0 100.8 Other projects 28.6 40.0 93.9 107.9 104.8 478.4 1,020.1 1,284.0 1,170.0 1,094.2 845.5 1,481.5 1,305.0 1,091.6 1,221.6 German methods in roads German methods in transportation and mobilitity2 German methods in irrigation Equipment land rights Total Situation at the beginning of 20114 1 Taken into account that commitments have been reviewed . methods of Ferrocarrils de la Generalitat de Catalunya (FGC) are not included 3 Capital contributions and fees for using tunnels are included. Debt of Ifercat is excluded 4 Rights of surface of Equipaments i Edificis de Catalunya SAL are excluded 2 German Budget Features 22
  22. 22. General fund non-financial expenditures variation (in ESA terms) In millions of euros Concepts Total budgeted general fund non-financial expenditures (in ESA terms) Budget 2011 Budget 2012 Var. 2012 / 2011 M€ % 24,112.5 23,941.8 -170.7 -0.7 1,477.9 1,994.3 516.4 34.9 478.4 1,020.1 541.7 113.2 22,156.2 20,927.4 -1,228.8 -5.5 Part of the expenditures relating to: Debt interests Payment of investments with deferred financing Rest of budgeted general fund non-financial expenditures (in ESA terms) Budget Features 23
  23. 23. Detail of the evolution of the main expenditure policies and programs In millions of euros Expenditure policies and programs Budget1 2011 Budget 2012 2012 / 2011 2012 / 2010 2011 expenditure moves to levels above M€ M€ Var. % Var. % General education 4,579.9 4,346.8 -5.1 -9.1 2007 Social protection 1,875.7 1,883.2 0.4 -5.5 2009 Health 9,063.2 8,628.7 -4.8 -10.2 2007 Security and civil protection 1,117.8 1,085.6 -2.9 -9.5 2008 Justice 848.0 817.3 -3.6 -12.2 2008 Social media 317.6 277.4 -12.7 -26.3 before 20062 Employment promotion 665.3 647.5 -2.7 -11.1 2009 Housing and other urban projects 256.2 179.0 -30.1 -41.6 2006 1,510.0 1,391.5 -7.8 -28.2 before 20062 866.0 1,116.3 28.9 -11.0 2007 5,554.8 5,679.6 2.2 -12.4 2006 26,654.5 26,052.9 -2.3 -12.0 5,975.5 3,674.4 -38.5 26.1 32,630.0 29,727.3 -8.9 -8.6 Running institutions and general administration Transportation Rest of programs Subtotal programs except debt expenditures Public debt repayment and financial expenditures3 Total Generalitat expenditures 1 Budget under the new structure of programs and spending policies (homogeneous comparisons). 2 The classification of expenditures in programs and policies starts in 2006. No comparable information available before 2006. 3 Includes debt payments, both capital and interests Budget Features 24
  24. 24. Generalitat’s non-financial revenues and expenditures evolution Initial budget estimates in millions of euros 35.000 30.000 25.000 20.000 15.000 10.000 2004 2005 Non-financial revenues 12012 2006 2007 Non-financial expenditures 2008 2009 2010 2011 2012 2012 non-financial revenues (without non-recurrent revenues) 1 real assets disposals and dealerships are considered as non-recurrent revenues (€888.2 m). Source: Department of Economy and Knowledge. Budget Features 25
  25. 25. Budget 2012 deficit (in ESA terms) In millions of euros 2012 Generalitat non-financial revenues 24,332.9 Generalitat non-financial expendiures 27,219.0 Generalitat non-financial budget position -2,886.1 ESA ajustments1 Non-financial budget position in ESA terms % deficit over GDP 146.0 -2,740.2 -1.30% Deficit falls by 2,668.2 M€ compared with Budget 2011 (-49.3%) 1 ESA adjustments include the result of the entities classified as Public Administration in ESA terms (PA-ESA) (€ -245.5 million), capital contributions of the Government to public entities not classified as PA-ESA to offset losses from previous years and other transfers (-137.6 M€), other ESA adjustments (census, accrual adjustments, uncertain revenues, etc) (-104.8 M€ ) and the fifth part of the negative settlement of the funding model years of years 2008 and 2009 (+138.1 M€ and +495.6 M€, respectively). Budget Features 26
  26. 26. Generalitat public debt evolution (in ESA terms) In millions of euros Debt (M€) Annual % change in public debt 45.000 41,676 36.3 38,531 40.000 35,0 32.3 35.000 40,0 32,974 30,0 30.000 25,0 24,189 25.000 19,659 20.000 15.000 14,043 20,0 16.9 15,0 14,863 8.2 10.000 5.000 23.0 10,0 5.8 5,0 1.8 0 0,0 2006 Actual 2007 Actual 2008 Actual Debt 2009 Actual 2010 Actual 2011 Budget 2012 Budget Annual % change in public debt Source: Bank of Spain (2006-2010) and Department of Economy and Knowledge (impact of Budget 2011 and 2012). Budget Features 27
  27. 27. Factors affecting the deficit Prudent revenue forecast  Revenue forecast is coherent with current macroeconomic weaknesses  Resources due from Central Government are not included in the Budget 2012 (Competitiveness fund, institutional loyalty and other additional resources)  Uncertainty about a possible review of advances from the funding model and a possible slowdown of the economy have been taken into account by increasing the Contingency fund ESA adjustments variability  The final calculation of the deficit is conditioned by the ongoing review of the scope and interpretation of the rules of the European System of Accounts (ESA) Budget Features 28
  28. 28. Public sector consolidated budget Public sector consolidated budget 29
  29. 29. Generalitat public sector entities included in the budget (current situation) Number of entities1 2011 2012 Generalitat2 1 1 Catalan Healthcare Service, Catalan Institute of Health and Catalan Institute of Assistance and Social Service 3 3 25 23 5 3 Public law companies 46 47 Trading companies 52 47 Consortiums 62 61 Foundations 46 43 240 228 Autonomous administrative entities Autonomous commercial and financial entities Total entitats sector públic de la Generalitat Other PA-ESA entities non-majority shareholding Total entities 1. 2. The Generalitat’s Government Plan states the elaboration and implementation of a plan for the simplification, redefinition and reduction of public sector structure. 28 268 26 254 The goal of the Government Plan is to reduce by 2014 a minimum of 20-25% the number of entities compared with 2010. Currently , in 2012 budget, there is a 5% reduction (12 entities) of the number entities and the fusion or elimination of an additional 10% (23 entities) is being processed. GC (Generalitat de Catalunya): Includes 12 departments, 5 non-departmental funds and 6 high bodies. PS (Generalitat public sector): Includes the Generalitat and all fully owned entities, or those in which the government has a majority stake. PA-ESA (Public administration in ESA terms): Includes the Generalitat and all entities classified as Public Administration according to ESA regulations (includes those in which the Generalitat does no have a majority stake). Existing entities at the beginning of the fiscal yea r See definitions at the box on the right hand side. Public sector consolidated budget 30
  30. 30. Generalitat public sector budgets1 In millions of euros Budget 2011 Budget 2012 2012 / 2011 2012 / 2010 M€ M€ % var. % var. Generalitat 32,630.0 29,727.3 -8.9 -8.6 Catalan Healthcare Service, Catalan Institute of Health and Catalan Institute of Assistance and Social Services 13,436.7 12,981.0 -3.4 -7.9 Autonomous administrative entities 785.3 714.5 -8.9 -22.7 Autonomous commercial and financial entities 131.2 24.1 -81.6 -82.5 Public law companies 5,466.8 6,182.4 13.1 -7.3 Trading companies 2,345.0 2,952.7 25.9 -2.4 Consortiums 3,506.6 3,199.9 -8.7 3.3 705.3 707.5 0.3 9.2 -19,653.0 -19,465.0 -1.0 -9.1 39,354.0 37,024.5 -5.9 -6.7 Subsectors Foundation Internal transfers Total consolidated 1Includes financial operations. Public sector consolidated budget 31
  31. 31. Generalitat’s public sector revenues by chapter In millions of euros Chapter Budget 2011 M€ Budget 2012 % M€ 2012 / 2011 % % var. 1. Direct taxes 8,358.5 21.2 8,116.3 21.9 -2.9 2. Indirect taxes 8,567.4 21.8 9,307.1 25.1 8.6 3. Fees, sales and other revenues 3,099.0 7.9 3,056.0 8.3 -1.4 4. Current transfers1 4,431.6 11.3 5,717.0 15.4 29.0 5. Property revenues 301.6 0.8 357.6 1.0 18.5 24,758.1 62.9 26,554.1 71.7 7.3 6. Real investments disposal 436.5 1.1 1,040.9 2.8 138.5 7. Capital transfers 988.5 2.5 341.7 0.9 -65.4 1,425.0 3.6 1,382.6 3.7 -3.0 26,183.1 66.5 27,936.6 75.5 6.7 1,019.3 2.6 1,331.7 3.6 30.7 Total revenues chapters 1 to 8 27,202.4 69.1 29,268.4 79.1 7.6 9. Financial liabilities (debt)3 12,151.6 30.9 7,756.1 20.9 -36.2 Total revenues 39,354.0 100.0 37,024.5 100.0 -5.9 Current revenues Capital revenues Total non-financial revenues 8. Financial assets2 is affected by the settlement for 2010 of the financing model (1090.3 M €). of financial assets, repayment of loans and capital contributions received from outside the public sector 3 Includes the refinancing of debt.. 1 Variation 2 Sale Public sector consolidated budget 32
  32. 32. Generalitat’s public sector expenditures by chapter Amounts in millions of euros Chapter Budget 2011 Budget 2012 2012 / 2011 2012 / 2010 M€ % M€ % % var. % var. 1. Employee compensation1 9,649.7 24.5 9,548.7 25.8 -1.0 -5.9 2. Current expend. on goods and services 8,316.4 21.1 7,936.1 21.4 -4.6 -6.8 3. Interests and financial fees 1,869.6 4.8 2,443.6 6.6 30.7 69.8 4. Current transfers 9,221.6 23.4 8,612.9 23.3 -6.6 -12.1 5. Contingency fund 39.0 0.1 250.0 0.7 541.0 66.7 29,096.3 73.9 28,791.3 77.8 -1.0 -4.2 2,231.0 5.7 1,900.8 5.1 -14.8 -54.3 740.6 1.9 581.5 1.6 -21.5 -39.7 2,971.6 7.6 2,482.3 6.7 -16.5 -51.6 32,067.9 81.5 31,273.6 84.5 -2.5 -11.1 1,861.6 4.7 2,256.9 6.1 21.2 29.7 9. Financial liabilities3 33,929.4 5,424.6 86.2 13.8 33,530.5 3,493.9 90.6 9.4 -1.2 -35.6 -9.2 25.7 Total expenditures 39,354.0 100.0 37,024.5 100.0 -5.9 -6.7 Current expenditures 6. Real investments 7. Capital transfers Capital expenditures Total non-financial expenditures 8. Financial assets2 Total expenditures chapters 1 to 8 1 Impact of mesures on public employee contributions to entities, lending and acquisition of other financial assets 3 Capital costs of debt repayment 2 Capital Public sector consolidated budget 33
  33. 33. Evolution of annually executed investment (includes budgeted investments and investments to be executed by others with deferred payment methods) In millions of euros 8.000 7.000 6,322.1 6.000 5,096.3 6,020.8 5,865.5 5,682.6 5,068.7 5.000 5,205.7 5,235.3 4,970.6 4,691.9 4.000 4,454.5 4,294.9 3,881.6 3,138.2 2,779.6 3.000 2,450.4 2,951.6 2,715.7 2.000 2,222.4 1,297.8 1,367.6 1998 1.000 1999 1,567.4 2,450.4 2,132.4 1,795.6 0 2000 2001 2002 (1) Public sector budgeted investments 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Public sector budgeted investments + investments financed by deferred payment methods (1) Payments for investments already executed and financed by German methods are excluded. Public sector consolidated budget 34
  34. 34. Job positions1 included in the public sector consolidated budget Number of job positions 2010 2011 2012 2012/2011 number homogeneous2 % 2012/2010 number % Executive personnel 247 211 207 -4 -1.9 -40 -16.2 Temporary consulting personnel 303 203 201 -2 -1.0 -102 -33.7 Other executive personnel (public sector entities) 171 135 115 -20 -14.8 -56 -32.7 Subtotal executive and consulting personnel 721 549 523 -26 -4.7 -198 -27.5 168,332 168,113 167,965 -148 -0.1 -367 -0.2 62,831 62,351 61,694 -657 -1.1 -1,137 -1.8 231,884 231,013 230,182 -831 -0.4 -1,702 -0.7 Subtotal civil servants Subtotal private regulation personnel Total public sector 1 Budgeted positions. staff transferred in 2010 from the Labour Inspection (249), the increase of teachers in September 2010 (578) and the incorporation of several entities in the public sector scope. In sum it accounts for an increase of 5,562 positions compared with January 2011 2 Includes Public sector consolidated budget 35
  35. 35. Analysis of expenditure policies Analysis of policies 36
  36. 36. Generalitat’s public sector expenditures by areas Amounts in millions of euros Pressupost 2012 2012/2010 Expenditure areas M€ % % var. Institutions and general administration 1,544.5 4.6 -29.1 General public services (justice, security, foreign service) 2,001.9 6.0 -12.8 Social protection (welfare and employment) 2,718.4 8.1 -7.7 15,012.1 44.8 -13.2 Public services –economic (infrastructures and transportation, R+D+I, environment, social media, etc.) 4,531.5 13.5 -28.4 Productive sectors incentives and regulation (agriculture, industry, trade, tourism, business development, official credit lines, etc) (1) 2,574.5 7.7 34.8 Financial support to local governments 2,897.7 8.6 7.7 250.0 0.7 66.7 1,999.9 6.0 78.5 33,530.5 100.0 -9.2 3,493.9 10.4 25.7 37,024.5 -- -6.7 Public services –social (healthcare, education, housing, culture, etc.) Contingency fund Public debt (interest) Total expenditures chapters 1 to 8 Financial liabilities (chapter 9) Total expenditures chapters 1 to 9 1 The increase of this expenditure area is mainly due to the increase, between 2011 and 2012, of the budget allocated to the program of Oficial credit, which is managed by the Catalan Institute of Finance Analysis of policies 37
  37. 37. Macroeconomic framework Macroeconomic framework 38
  38. 38. Macroeconomic forecast - Catalonia % annual change –unless otherwise indicated 2010 GDP market prices (% real change) GDP (M€) GDP (% nominal change) Internal demand1 Household consumption Public sector consumption2 Investment3 Capital goods and others Construction Foreign trade balance1 3 Foreign trade balance Exports of goods and services Imports of goods and services Balance with the rest of Spain3 2011 2012 0.1 0.7 0.8 209,727 1.2 214,403 2.2 219,321 2.3 -0.3 -1.3 0.1 1.7 0.2 -5.6 -1.5 -10.7 0.5 -2.9 -5.1 -3.1 -7.3 0.9 -2.6 0.1 2.1 -2.3 0.3 2.0 0.7 1.0 12.6 8.4 -0.7 1.9 9.1 2.8 0.1 0.7 4.8 2.9 0.0 1.1 1.6 1.5 -64.1 -2.0 17.8 -22.0 -0.7 18.6 6.2 0.2 18.5 Prices GDP Deflator Mercat de treball Jobs created (thousands)4 Jobs created (% change)4 Estimated unemployment rate (EPA) (% unemployed/active population) 1. Contribution to growth. 2. Includes non-profit household consumption. 3. Includes stock variation. 4. Full-time jobs. Source: IDESCAT and Department of Economy and Knowledge. Macroeconomic framework 39
  39. 39. Real GDP % annual change 5,0 4,0 3,0 3.4 3.3 3.8 3.7 3.3 3.2 2.6 2,0 1,0 0.7 0,0 0.8 2011 (pr) 2012 (pr) 0.1 0.1 -1,0 -2,0 -3,0 -4,0 -4.2 -5,0 2001 2002 2003 2004 2005 Catalonia 2006 2007 Spain* 2008 2009 2010 Euro zone (pr) forecast Spain forecasts correspond to those formulated by the European Commission. Source IDESCAT, INE, European Commission and Department of Economy and Knowledge Macroeconomic framework 40
  40. 40. Internal and external demand % contribution to growth 6,0 5.4 4.7 4,0 4.4 4.3 3.7 3.5 3.1 2.0 2,0 1.1 0.7 1.0 0.3 0.1 0,0 -0.1 -0.5 -0.3 -0.3 -1.0 -1.1 -1.5 -2,0 -1.2 -1.0 -1.3 -4,0 -5.2 -6,0 2001 2002 2003 2004 2005 Internal demand 2006 2007 2008 External demand 2009 2010 2011 (pr) 2012 (pr) GDP (pr) forecast Source: IDESCAT. External demand includes trading with other countries and the rest of Spain. Macroeconomic framework 41
  41. 41. Imports and exports (foreign countries) % interannual change, 12-month average 30,0 20,0 10,0 0,0 -10,0 -20,0 -30,0 Exports Imports Source: IDESCAT and Central Government Tax Agency. Macroeconomic framework 42
  42. 42. Prices in Catalonia, Spain and the Eurozone % interannual change 6,0 5,5 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 -0,5 -1,0 -1,5 Catalonia Spain Eurozone Source: INE and Eurostat. Macroeconomic framework 43
  43. 43. Unemployment rate (EPA) % active population 25,0 22,5 20,0 18.8 18.6 17.8 18.5 17.1 17,5 16.2 14.4 15,0 12,5 10.7 10.1 10,0 8.9 10.0 9.7 9.0 8.6 7.0 7,5 6.6 6.5 2006 2007 5,0 1996 1997 1998 1999 2000 2001 2002 2003 Catalonia 2004 Spain 2005 2008 2009 2010 2011 (pr) 2012 (pr) Eurozone (pr) forecast Source: IDESCAT, INE, Eurostat, Department of Economy and Knowledge and European Commission. Methodological changes in Catalonia and Spain series in 2001 and 2005. Macroeconomic framework 44
  44. 44. Catalonia’s industry production index % interannual change, 12-month average 15,0 10,0 5,0 0,0 -5,0 -10,0 -15,0 -20,0 -25,0 -30,0 % interannual change 12-month average % interannual change Source: IDESCAT. Macroeconomic framework 45
  45. 45. Foreign tourism and hotel overnights in Catalonia % interannual change 40,0 30,0 20,0 10,0 0,0 -10,0 -20,0 -30,0 Foreign tourism (tourists) Hotel overnights Source: IDESCAT. Macroeconomic framework 46
  46. 46. www.gencat.cat/economia/pressupostos 47

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