ANDALUCIA is set to see its largest budget ever in 2023 after a resounding growth in tax revenue.
The southern region will have over €45billion to play with next year, a €5billion increase on the current one, which will see a generous boost in public expenditure for essential services such as health and education.
Nearly half of the record intake will come from tax revenues, which have grown 25% to €20.8billion.
This is mainly off the back of a post-pandemic rebound that saw strong growth in income tax and VAT, equal to €1,800 per person. The figure is slightly mirage-like, however, as it is also driven by rising inflation.
The budget is based upon a forecast GDP growth across Spain of 1.9% and an inflation rate of 4.5%.
“[The expected inflation rate] is subject to the impact of the war in Ukraine, the rise in energy and raw materials, or the rise in inflation,” said Economy and Finance Minister Carolina España in the AndaluCian Parliament.
“However, Andalucia has had superior growth and better than average labour market performance. All this allows us to face an uncertain future with determination.”
The largest single expenditure will be on health, which will enjoy a 10% increase on this year’s outlay, to €13.8bn. This is the equivalent of 7.4% of the GDP of Andalucia.
Similarly, education spending will be boosted by 15% to €8.5billion.
Financing from the EU has also been another pillar of next year’s record budget haul, with over €5billion coming in from European structural funds that will be key to an 83% increase in investments the Andalucian Parliament is looking to make.