Spain Investment: Madrid vs. Catalonia Funding Gap

BarcelonaThe Spanish government has invested, on average, twice as many Madrid money as in Catalan since the arrival of Pedro Sánchez to Moncloa. The State has maintained the tendency that the PP executives already had to end up allocating more money than expected to the budgets in the Spanish capital, and rather, leaving much of the investment departure for Catalonia, which causes a notable disparity in the funds that the socialist executive has allocated to both territories as mid -2018, when he regained power.

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Specifically, as the beginning of the presidency of Sánchez, the Spanish government has invested in Catalonia 5,386 million euros. In the Community of Madrid (CAM), conversely, investment in the Madrid autonomous community since the second half of 2018 has been 9,713 million, 80% more (or 4.327 million) than in Catalonia, according to the report Territorial distribution of state public investmentwhich elaborates the General Intervention of the State Governance (IGAE) dependent on the Ministry of Finance.

This data corresponds to the execution of the investment, that is, the data of what the Executive spends, not what the General State Budgets provide for the role. In fact, in this sense, the data is paradoxical: although in fact, it invests 80% more in Madrid than in Catalonia, in the state accounts the figures are inverse and the executive of Sánchez has always planned a much greater investment in Catalonia.

Sánchez was able to approve budgets in 2021, 2022 and 2023. In the first year, the budget investment in Catalonia was 2.068 million compared to 1,134 million in Madrid. The following two exercises, the situation was similar: in Catalonia, 2,207 million and 2,276 million, respectively, compared to 1,055 million and 1,207 million in the Spanish capital. Figures, then, that double the investment budgeted in the Principality compared to the Community of Madrid.

State investment in Catalonia and Madrid with Pedro Sánchez

Annual execution of state investment, in millions of euros

These data are some of those used by the Spanish government to justify its investment commitment to Catalonia, both for the voters and for its parliamentary partners (ERC and, to a lesser extent, together) and the entities of civil society – especially employers and economic entities – that have been denouncing the discriminatory treatment that Catalonia receives in the field of investments for years.

Execution by land in Catalonia

Though,the reality – the money invested in the real economy – is calculated with the execution (also called settlement) of the budget. Despite having approximately double money for the budget, the state investment in Catalonia has ended up being lower than in Madrid in all years as Sánchez has held the presidency of the Government.This trend is not new, but is inherited from the previous government, that of Mariano Rajoy, who also used to invest more money on the CAM by system.

Thus, not counting in 2018 (Sánchez arrived at the presidency in June of that year) or in 2024 (only data from the first semester are known), the rest of the years with Sánchez at the helm, the executive has allocated between 740 million and £ 1,028 million each year in the Principality, while in Madrid the figures have moved between the 1.107 million and the £ 286 million. Thus, despite budgeting almost double for Catalonia than for Madrid, the year with less investment in the Spanish capital ended up surpassing the best of the Principality.

These data, however, are aggravated by the fact that the difference between the two territories in terms of economic activity is very small: Catalonia represents, if not, 19% of the Spanish economy and Madrid, around 19.5%. And by population, the figure is even worse for Catalan interests, as Madrid has one million less inhabitants.

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