Catalan Government Budget 2013

2

Budget 2012

2nd stage of the fiscal consolidation plan based on

the principles of austerity, prioritization of social spending,

credibility and joint responsibility

3

SumariMarc macroeconòmic

Dades bàsiques dels pressupostos

Eixos i polítiques

Anàlisi dels ingressos

Anàlisi de les despeses

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)

Prioritization of social spending: maintain main services of the welfare

state. Efforts can not focused only on expenditure

Credibility: adjustment planned for two years. In 2011 Budget efforts were

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

4

Generalitat

Budget(1)

General fund non-

financial

expenditures

(in ESA terms)(2)

Public Sector

Budget (3)

Expenditures financed by general funds 23,559 23,559 23,559

Expenditures financed by earmarked funds 3,660 -- 3,660

Non-financial expenditures of the rest of public sector -- -- 4,055

Subtotal non-financial expenditures (chapters 1 to 7) 27,219 -- 31,274

Financial assets (chapter 8) 834 -- 2,257

Subtotal non-financial expenditures and financial assets (chap. 1 to 8) 28,053 -- 33,531

Financial liabilities (debt repayment - chapter 9) 1,675 -- 3,494

Total expenditures (chapters 1 to 9) 29,727 -- 37,024

Non-financial deficit of PA-ESA entities (4) 245

Capital contributions to non-PA-ESA entities equivalent to capital transf. 138

General fund non-financial expenditures (in ESA terms) 23,942

Generalitat’s Budget key numbers

(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).

Millions of euros

Budget Features

5

Earmarked

funds

€3,660 m

Loans and

capital

contributions

€834 m

Debt repayment

€1,675 m

Own resources

and debt of the

rest of Public

Sector (227

entities)

€7,297 mESA adjustments:

Non-financial deficit

192 PA-ESA entities

€245 m+

Capital contributions to

non- PA-ESA entities

equivalent to non-

financial expenditures

€138 m

+=

Generalitat of

Catalonia

Budget

€29,727 m

Generalitat

Public Sector

Budget

€37,024 m

General fund

non-financial

expenditures

€23,559 m

General fund

non-fin.

expenditures

(ESA terms)*

€23,942 m

Generalitat’s Budget key numbers

*Expenditures to be adjusted in order to assure the deficit goal achievement in ESA terms.

Millions of euros

Budget Features

6

Source: Bank of Spain, Ministry of Economy and Finance, National Institute of Statistics (INE) and Department of Economy and Knowledge.

+2.2

+2.7

+4.3

+2.3

Government deficit and debtOutturn and budget values in ESA terms (% of GDP)

+0.8

Budget Features

-0.73 -0.39 -0.45 -0.22 -0.62

-2.60 -2.41

-4.22

-2.6

-1.30

7.4 7.7 8.1 7.6 7.5

9.7

12.4

16.7

19.019.8

-5

0

5

10

15

20

25

-6

-4

-2

0

2

4

6

8

10

12

2003 Outturn

2004 Outtrun

2005Outtrun

2006Outtrun

2007Outtrun

2008Outtrun

2009Outtrun

2010Outtrun

2011 Budget

2012 Budget

Debt(%GDP)

Deficit (%GDP)

Deficit Debt

7

-0.22

-0.62

-2.60

-2.41

-4.22

-2.66

-1.30

-1.10-1.00

-5

-4

-4

-3

-3

-2

-2

-1

-1

0

2006Outtrun

2007Outtrun

2008Outtrun

2009Outtrun

2010Outtrun

2011Budget

2012Budget

2013 2014

Achievement of the deficit goal in 2012Deficit in ESA terms (% of GDP)

1Council for Fiscal and Finance Policy.

Source: Department of Economy and Knowledge and INE.

CPFF1 goals 2012-2014

Budget Features

8

M€ % GDP Var. M€ Var. %

Deficit 2010 (outturn) 8,352.0 4.22

Deficit 2012 (budget) 2,740.2 1.30 -5,611.8 -67.2

Commitment to reduce the deficit in two yearsAmounts in millions of euros

Over a period of two years the deficit will be reduced by 5,611.8 M€ (-67.2%)

Budget Features

9



Eixos i polítiques



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

Fiscal consolidation efforts continue in 2012, but not exclusively by the

expenditure side

Further efforts must be enabled in the revenue side, from the public

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

10



Eixos i polítiques



Revenue mesures

Increase the tax on retail sales of certain hydrocarbons (regional

part), with tax deductions for certain groups

Creation of a tourist accommodation tax

Rise the tax on documented legal acts, with tax deductions linked to

non-recourse debt mortgages

Maintenance of the highest income tax rates in personal income tax

Maintenance of wealth tax (temporarily reestablished by Central

Government)

Budget Features

11



Eixos i polítiques



Efforts by users of public services

Increase the water canon to assure water supply and purification. Includes

support measures to vulnerable people

Fees increase to assure the financial sustainability of certain public

services

Fee on pharmaceutical prescriptions to avoid overuse and abuse, with

little collecting impact, but with a potential dissuasive effect

Budget Features

12

Budget 2012 revenue mesuresIn 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

13

Concepts Budget 2011 Budget 2012 Var. 2012 / 2011

M€ %

Inheritance and donations tax 288.6 197.6 -91.0 -31.5

Wealth tax -- 240.4 240.4 --

Tax on transfers and documented legal acts 1,286.6 1,221.1 -65.5 -5.1

Gambling taxes 308.3 254.0 -54.3 -17.6

Energy tax 279.3 311.1 31.8 11.4

Vehicle registration tax 110.0 114.2 4.2 3.8

Tax on retail sales of certain hydrocarbons 280.4 390.0 109.6 39.1

Totally devolved taxes 2,553.2 2,728.4 175.2 6.9

Personal income tax (regional share) 8,055.9 7,842.8 -213.1 -2.6

VAT (share of Spanish central government tax) 4,619.0 5,550.2 931.2 20.2

Taxes on tobacco, alcoholic drinks and hydrocarbons (advances of tax shares) 2,072.5 1,964.0 -108.6 -5.2

Partially devolved taxes 14,747.4 15,356.9 609.5 4.1

Total devolved tax revenues 17,300.6 18,085.4 784.8 4.5

Global Sufficiency Fund (advance) 1,840.0 1,765.1 -74.9 -4.1

Fundamental Services Guarantee Fund (advance) -1,460.0 -1,065.5 394.6 -27.0

Rest of resources of the funding system1

102.0 91.0 -11.0 -10.8

2008 and 2009 funding system pending settlements2

-138.1 -633.8 -495.6 358.8

2010 funding system pending settlement -- 1,090.3 1,090.3 --

Subtotal funding system revenues3 17,644.4 19,332.5 1,688.1 9.6

In millions of euros

Generalitat’s non-financial revenues

1 Includes specific funds to improve health system2 Total 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.

Budget Features

14

Concepts Budget 2011 Budget 2012 Var. 2012 / 2011

M€ %

Subtotal funding system revenues 17,644.4 19,332.5 1.688.1 9.6

Local Governments share of Central Government’s Revenues 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

Rest of non-financial revenues 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

Total earmarked non-financial revenues 3,620.7 3,660.3 39.6 1.1

Generalitat’s non-financial revenues (continues)


Budget Features

15

Accuracy in forecasting revenuesIn M€

Initial estimates and outturn of totally devolved taxes1

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

2,394

2,824

3,802

4,488

5,214

6,320

5,829

4,173

3,364

2,2882,191

2,359

3,232

4,020

4,811

5,590

5,083

3,592

3,077

2,767

2,286*

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012

Budget Outturn

16

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

17

Section

Budget

2011

Budget

2012Var. 2012 / 2011 Var. 2012 / 2010

M€ M€ M€ % M€ %

Presidency 536.2 472.9 -63.3 -11.8 -204.7 -30.2

Governance and Institutional Relations 325.4 307.3 -18.1 -5.6 -103.0 -25.1

Economy and Knowledge 1,213.8 1,101.6 -112.2 -9.2 -389.4 -26.1

Education(3) 4,834.2 4,595.9 -238.3 -4.9 -626.8 -12.0

Health (3)(4) 8,978.9 8,546.1 -432.7 -4.8 -1,053.5 -11.0

Home Affairs (3) 1,144.6 1,088.2 -56.4 -4.9 -134.5 -11.0

Territory and Sustainability(2)(4) 1,362.8 1,564.5 201.7 14.8 -228.8 -12.8

Culture 282.3 267.9 -14.4 -5.1 -66.5 -19.9

Agriculture, Livestock, Fisheries, Food and Nat. Environ. 367.2 340.7 -26.5 -7.2 -138.4 -28.9

Social Welfare and Family 1,746.5 1,728.5 -18.0 -1.0 -212.5 -10.9

Enterprise and Labour 586.3 542.6 -43.7 -7.4 -218.9 -28.7

Justice (3) 911.7 886.8 -24.9 -2.7 -114.4 -11.4

Subtotal departments 22,289.9 21,443.0 -846.8 -3.8 -3,491.3 -14.0

Debt(interests) 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

Total 24,112.5 23,941.8 -170.7 -0.7 -2,609.0 -9.8


Non-linear distribution of general fund non-financial expenditures (in ESA terms) by

departments(1)

1 See note 2 on page 42 The 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.

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.

These savings will be

especially significant

in the departments of

Health, Education,

Home Affairs and

Justice

Budget Features

18

Social expenditure is maintained as a priority


1 See note 2 in page 4

General fund non-financial expenditures in ESA

terms1

Budget

2010

Budget

2011

Budget

2012

Health + Education + Social Welfare and Family(% over total departments)

67.2% 69.8% 69.3%

Health + Education + Social Welfare and Family (% over total departments, excluding Territory and Sustainability)

72.4% 74.4% 74.8%

Budget Features

19

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

20



Eixos i polítiques



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

accompanied with work flexibility measures

Suspension of productivity bonus and 50% reduction of the maximum amounts to be paid

during 2012 in management by objectives incomes employee of Catalan Healthcare

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

21

Evolution of budgeted and actual interest expenditures1


Interest expenditures increase

in Budget 2012:

Over Budget 2011 Over Outturn 20112 Over Outturn 2010

516.4 M€ 517.2 M€ 1,075.2 M€

1Generalitat Aministration. The overall budgeted public sector interest expenditures for 2012 are €2,443.6 m.

2Outturn2011 forecast by the Department of Economy and Knowledge.

Source: Generalitatt’s Budget

Budget Features

440.7491.2

561.1678.7

808.5

1,18.7

1,477.9

1,994.3

480.4 504.7570.3

696.9796.6

919.2

1,477.12

0

500

1.000

1.500

2.000

2.500

2005 2006 2007 2008 2009 2010 2011 2012

Budget Outturn

22

20111 2012 2013 2014 2015

German methods in roads 0.0 82.4 317.9 114.2 60.3

German methods in transportation and mobilitity2 20.0 184.9 46.6 48.0 0.0

German methods in irrigation 0.0 82.6 10.4 0.0 0.0

Equipment land rights 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

Total 478.4 1,020.1 1,284.0 1,170.0 1,094.2

Situation at the beginning of 20114 845.5 1,481.5 1,305.0 1,091.6 1,221.6

Future payments linked to investments made using deferred payment methodsAmounts in millions of euros

1 Taken into account that commitments have been reviewed .

2 German 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

Budget Features

23

General fund non-financial expenditures variation (in ESA terms)


ConceptsBudget

2011

Budget

2012

Var. 2012 / 2011

M€ %

Total budgeted general fund non-financial expenditures

(in ESA terms)24,112.5 23,941.8 -170.7 -0.7

Part of the expenditures relating to:

Debt interests 1,477.9 1,994.3 516.4 34.9

Payment of investments with deferred financing 478.4 1,020.1 541.7 113.2

Rest of budgeted general fund non-financial expenditures

(in ESA terms)22,156.2 20,927.4 -1,228.8 -5.5

Budget Features

24

Detail of the evolution of the main expenditure policies and programs

Expenditure policies and programs

Budget1

2011

Budget

20122012 / 2011 2012 / 2010 2011 expenditure

moves to levels

aboveM€ 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

Running institutions and general administration 1,510.0 1,391.5 -7.8 -28.2 before 20062

Transportation 866.0 1,116.3 28.9 -11.0 2007

Rest of programs 5,554.8 5,679.6 2.2 -12.4 2006

Subtotal programs except debt expenditures 26,654.5 26,052.9 -2.3 -12.0

Public debt repayment and financial expenditures3 5,975.5 3,674.4 -38.5 26.1

Total Generalitat expenditures 32,630.0 29,727.3 -8.9 -8.6

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

25

Generalitat’s non-financial revenues and expenditures evolutionInitial budget estimates in millions of euros

Source: Department of Economy and Knowledge.

12012 real assets disposals and dealerships are considered as non-recurrent revenues (€888.2 m).

1

10.000

15.000

20.000

25.000

30.000

35.000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Non-financial revenues Non-financial expenditures 2012 non-financial revenues (without non-recurrent revenues)

Budget Features

26

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 146.0

Non-financial budget position in ESA terms -2,740.2

% deficit over GDP -1.30%

Deficit falls by 2,668.2 M€ compared with Budget 2011 (-49.3%)

Budget 2012 deficit (in ESA terms)In millions of euros

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

27

Generalitat public debt evolution (in ESA terms)

Source: Bank of Spain (2006-2010) and Department of Economy and Knowledge (impact of Budget 2011 and 2012).


14,04314,863

19,659

24,189

32,974

38,531

41,676

1.8

5.8

32.3

23.0

36.3

16.9

8.2

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

2006Actual

2007Actual

2008Actual

2009Actual

2010Actual

2011 Budget

2012 Budget

Annual % change in public debt

Debt (M€)

Debt Annual % change in public debt

Budget Features

28

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

29

Public sector consolidated budget


30

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

Autonomous administrative entities 25 23

Autonomous commercial and financial entities 5 3

Public law companies 46 47

Trading companies 52 47

Consortiums 62 61

Foundations 46 43

Total entitats sector públic de la Generalitat 240 228

Other PA-ESA entities non-majority

shareholding28 26

Total entities 268 254

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).

1. Existing entities at the beginning of the fiscal yea r

2. See definitions at the box on the right hand side.

The Generalitat’s Government Plan states the

elaboration and implementation of a plan for the

simplification, redefinition and reduction of public

sector structure.

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.


31

Generalitat public sector budgets1


1Includes financial operations.

SubsectorsBudget 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 Services13,436.7 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

Foundation 705.3 707.5 0.3 9.2

Internal transfers -19,653.0 -19,465.0 -1.0 -9.1

Total consolidated 39,354.0 37,024.5 -5.9 -6.7


32

Generalitat’s public sector revenues by chapterIn millions of euros

1 Variation is affected by the settlement for 2010 of the financing model (1090.3 M €).2 Sale of financial assets, repayment of loans and capital contributions received from outside the public sector3 Includes the refinancing of debt..

ChapterBudget 2011 Budget 2012 2012 / 2011

M€ % M€ % % 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

Current revenues 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

Capital revenues 1,425.0 3.6 1,382.6 3.7 -3.0

Total non-financial revenues 26,183.1 66.5 27,936.6 75.5 6.7

8. Financial assets2 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


33

Generalitat’s public sector expenditures by chapterAmounts in millions of euros

1 Impact of mesures on public employee

2 Capital contributions to entities, lending and acquisition of other financial assets

3 Capital costs of debt repayment

ChapterBudget 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

Current expenditures 29,096.3 73.9 28,791.3 77.8 -1.0 -4.2

6. Real investments 2,231.0 5.7 1,900.8 5.1 -14.8 -54.3

7. Capital transfers 740.6 1.9 581.5 1.6 -21.5 -39.7

Capital expenditures 2,971.6 7.6 2,482.3 6.7 -16.5 -51.6

Total non-financial expenditures 32,067.9 81.5 31,273.6 84.5 -2.5 -11.1

8. Financial assets2 1,861.6 4.7 2,256.9 6.1 21.2 29.7

Total expenditures chapters 1 to 8 33,929.4 86.2 33,530.5 90.6 -1.2 -9.2

9. Financial liabilities3 5,424.6 13.8 3,493.9 9.4 -35.6 25.7

Total expenditures 39,354.0 100.0 37,024.5 100.0 -5.9 -6.7


34

Evolution of annually executed investment (includes budgeted investments and

investments to be executed by others with deferred payment methods)In millions of euros

(1) Payments for investments already executed and financed by German methods are excluded.

1,297.8 1,367.61,567.4

1,795.6

2,222.42,450.4

2,715.7

4,294.9

4,691.94,454.5

5,205.7 5,235.34,970.6

2,951.6

2,132.4

2,450.4

3,138.2

5,096.3

5,682.6

5,068.7

5,865.5

6,322.1

6,020.8

3,881.6

2,779.6

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Public sector budgeted investments Public sector budgeted investments + investments financed by deferred payment methods(1)


35

Job positions1 included in the public sector consolidated budget

2010 2011 2012 2012/2011 2012/2010

homogeneous2 number % 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

Subtotal civil servants 168,332 168,113 167,965 -148 -0.1 -367 -0.2

Subtotal private regulation personnel 62,831 62,351 61,694 -657 -1.1 -1,137 -1.8

Total public sector 231,884 231,013 230,182 -831 -0.4 -1,702 -0.7

Number of job positions

1 Budgeted positions.2 Includes 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


36

Analysis of expenditure policies

Analysis of policies

37

Generalitat’s public sector expenditures by areasAmounts in millions of euros

Expenditure areas

Pressupost 2012 2012/2010

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

Public services –social (healthcare, education, housing, culture, etc.) 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

Contingency fund 250.0 0.7 66.7

Public debt (interest) 1,999.9 6.0 78.5

Total expenditures chapters 1 to 8 33,530.5 100.0 -9.2

Financial liabilities (chapter 9) 3,493.9 10.4 25.7

Total expenditures chapters 1 to 9 37,024.5 -- -6.7

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

38

Macroeconomic framework


39

2010 2011 2012

GDP market prices (% real change) 0.1 0.7 0.8

GDP (M€) 209,727 214,403 219,321

GDP (% nominal change) 1.2 2.2 2.3

Internal demand1 -0.3 -1.3 0.1

Household consumption 1.7 0.5 0.9

Public sector consumption2 0.2 -2.9 -2.6

Investment3 -5.6 -5.1 0.1

Capital goods and others -1.5 -3.1 2.1

Construction -10.7 -7.3 -2.3

Foreign trade balance1 0.3 2.0 0.7

Foreign trade balance3 1.0 1.9 0.7

Exports of goods and services 12.6 9.1 4.8

Imports of goods and services 8.4 2.8 2.9

Balance with the rest of Spain3 -0.7 0.1 0.0

Prices

GDP Deflator 1.1 1.6 1.5

Mercat de treball

Jobs created (thousands)4 -64.1 -22.0 6.2

Jobs created (% change)4 -2.0 -0.7 0.2

Estimated unemployment rate (EPA) (% unemployed/active population) 17.8 18.6 18.5

Macroeconomic forecast - Catalonia% annual change –unless otherwise indicated

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.


40

Real GDP% annual change

(pr) forecast

Spain forecasts correspond to those formulated by the European Commission.

Source IDESCAT, INE, European Commission and Department of Economy and Knowledge

3.4

2.6

3.33.7

3.2

3.8

3.3

0.1

-4.2

0.1

0.7 0.8

-5,0

-4,0

-3,0

-2,0

-1,0

0,0

1,0

2,0

3,0

4,0

5,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (pr) 2012 (pr)

Catalonia Spain* Euro zone


41

Internal and external demand% contribution to growth

(pr) forecast

Source: IDESCAT. External demand includes trading with other countries and the rest of Spain.

3.53.1

3.7

4.74.3

5.4

4.4

-1.0

-5.2

-0.3

-1.3

0.1

-0.1-0.5 -0.3

-1.0 -1.1-1.5

-1.2

1.1 1.0

0.3

2.0

0.7

-6,0

-4,0

-2,0

0,0

2,0

4,0

6,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (pr) 2012 (pr)

Internal demand External demand GDP


42

Imports and exports (foreign countries)% interannual change, 12-month average

Source: IDESCAT and Central Government Tax Agency.


-30,0

-20,0

-10,0

0,0

10,0

20,0

30,0

Exports Imports

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Prices in Catalonia, Spain and the Eurozone% interannual change

Source: INE and Eurostat.


-1,5

-1,0

-0,5

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

5,5

6,0

Catalonia Spain Eurozone

44

Unemployment rate (EPA)% active population

(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.


18.8

17.1

14.4

10.7

8.9 8.6

10.1 10.0 9.7

7.06.6 6.5

9.0

16.2

17.8

18.6 18.5

5,0

7,5

10,0

12,5

15,0

17,5

20,0

22,5

25,0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (pr)

2012 (pr)

Catalonia Spain Eurozone

45

Catalonia’s industry production index% interannual change, 12-month average

Source: IDESCAT.


-30,0

-25,0

-20,0

-15,0

-10,0

-5,0

0,0

5,0

10,0

15,0

% interannual change 12-month average % interannual change

46

Foreign tourism and hotel overnights in Catalonia


% interannual change

Source: IDESCAT.

-30,0

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

Foreign tourism (tourists) Hotel overnights

47

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Catalan Government Budget 2013

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Transcript of Catalan Government Budget 2013