Puig: Better financing would increase GDP by 3% and create 48,000 jobs

The Comunitat would receive 2,500 million euros more from the Central Administration if rational criteria of spending needs were followed, which would translate into a GDP growth of 3% and 47,877 new jobs, according to the conclusions preliminary of a study of the Valencian Institute of Economic Investigations (IVIE) advanced by the president of the Generalitat, Ximo Puig.

Image result for gdpThis new report has been prepared from data from the Ministry of Finance in the period 2011-2014, and presented this Monday by Puig, who has stated that public spending in the Valencian Community is “a big scam” and shows that it exists ” a deep democratic anomaly. “

Puig has detailed that of those 2.500 million, 1.607 have origin in the autonomic financing; another 692 would come from the increase of the Central Administration in the competences that it manages (logistical infrastructures, regional aid, justice and citizen security, aid for dependency and support for job placement of the unemployed); and 202 million would have to come from an improvement in local financing.

With objective criteria, these amounts would result in GDP growth of almost 3,000 million (3%) and employment (2.7%), and the fiscal balance would go from negative to positive, Puig said after ensuring that the years 2011 to 2014 the region “has stopped receiving 10 billion”.

“We Valencians are fulfilling but their loyalty is not reflected in the financing, in the investment of the State”, according to the president, who has asked the Government “reforms and rationality” and that the autonomy financing debate never be repeated .

He assured that Rajoy’s credit “has fallen significantly” because he said in January 2017 before all the autonomous presidents that there would be a new financing model that year, after that it would be done in the first months of this year, and later that this month May, the Fiscal and Financial Policy Council will meet, and recalled that the regional financing system has been delayed for four and a half years.

Puig has urged to move “from marketing to rationality” to ensure equity and that Spanish citizens are “equal in diversity”, and has considered that a rational system can help solve territorial problems.

“Territorial problems are not resolved with flags, no matter how big they are, they are resolved by giving solutions to citizens,” he proclaimed.

According to this report of the IVIE, the Community has a negative balance in the fiscal balance despite having a per capita income level of 88%, and public spending in this region is “the lowest” of all the territories, since of the 256.704 million of expenditure channeled by the Central Administration between 2011 and 2014, only 22.967 have gone to the Comunitat, which represents 8.9% of the total, a percentage lower than the population weight.

Despite being an autonomy with fewer resources than the average, the Comunitat contributes to interterritorial solidarity by financing the higher public spending of richer communities, he adds.

Image result for gdpIn addition, in the current financing system, the greatest “disadvantages” occur in regional aid, support for agriculture, livestock and fisheries, investments in infrastructure and financing of social services, since in none of these items does the expenditure reach 70%. %.

Puig has offered this information after meeting with the Minister of Finance, Vicent Soler, and financing experts José Antonio Pérez and Francisco Pérez, to analyze the situation of the negotiation of the new regional financing system.