Unformatted text preview: stablishment of two new councils has led to unquestioned
♦ The Superior Management Council of the State Tax Administration Agency, with State representatives, six representatives
from the autonomous communities and the president of AEAT; ♦ The Catalonia Territorial Tax Management Council, with three representatives of the State government and three
representatives of the Generalitat, chaired by the special delegate. This first step must enable us to move in the future toward the objective of full participation. 5. REVIEW OF SOLIDARITY MEASURES Solidarity is one of the principles underpinning the new funding agreement. The following mechanisms are available to
concretize such solidarity:
♦ adequacy fund: based on population distribution; ♦ specific health funds: for health cohesion and lower spending in respect of temporary illness-related work stoppages; ♦ relative revenue fund: for communities with lower per-capita income; ♦ allocation of minimum levelling of public services (health and education); ♦ inter-territorial compensation fund. In the procedure overall, a principle of institutional loyalty is established, implying the adoption of a procedure that
makes it possible to determine the necessary economic compensation in respect of legislative or administrative
decisions adopted by the State that lead to higher spending for the autonomous communities, especially in the realms of
health, education or justice. 225 Commission on Fiscal Imbalance 6. FISCAL BALANCE Fiscal balance reveals the difference between the revenues that Catalonia contributes to the central government and the
expenditures assumed in Catalonia.
Since per-capita revenue in Catalonia exceeds the average for the Spanish State, the revenues contributed exceed the
expenditures assumed and the fiscal balance is negative.
The latest study on Catalonia’s fiscal balance covers the period 1995-1998 and reveals that for 1998, Catalonia had a
1.3-billion peseta fiscal deficit (216,000 pesetas/inhabitant and 8.4% of Catalan GDP).
During the period analysed, the deficit increased, from 5.8% of GDP to 8.4%. This deterioration stems in part from a
thriving economy, since during periods of prosperity positive revenues increase more than expenditures and the fiscal
deficit thus grows.
The new model remedies the situation that arises because the autonomous communities do not participate in fiscal
enhancement during prosperous times and, consequently, it tends to reduce the fiscal deficit. 226 Commission on Fiscal Imbalance THE FINANCES OF DECENTRALIZED AUTHORITIES AND FINANCIAL
RELATIONS BETWEEN AUTHORITIES AT DIFFERENT LEVELS IN
FRANCE TRENDS AND OUTLOOK
By Guy Gilbert 1. INTRODUCTION France’s image on the international scene still seems so heavily marked by its past as a nation structured around the
crushing power of a unitary-central State that one expects in a symposium such as this one devoted to “fiscal imbalance”
the place reserved for French experience to be at best that of...
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