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Public expenditure in the Valencian Community needs to increase by 2,500 million euros to match the fiscal balance of other regions with similar income levels

The Valencian Community’s fiscal balance –the difference between the public revenues and expenses incurred in the región (excluding social security)– was negative during the period 2011-2014 according to the latest regionalized public accounts data published by the Spanish Ministry of Finance. The implication of this fiscal deficit in the Valencian Community, a region with a per capita income equal to 88% of the Spanish average, is that despite being a financially poor region, it contributes to interregional solidarity by financing the public spending of richer regions. Correcting this imbalance would require increasing public spending by 10.9%, improving regional and local government funding and raising central government expenditure in the Valencian region.