July 2014

Fiscal balances: an issue on the table

Marta Espasa's picture

A fiscal balance is a tool that measures the central government's redistribution impact among the Autonomous Communities. That is to say, this allows one to know the expenditure made by the central government in a given territory and the fiscal revenue obtained from that territory. The fiscal balance is the difference between the expenditure allocated and the revenue collected by the central government in a specific territory. Therefore, when an Autonomous Community posts a fiscal deficit, it means that the revenue the central government obtains from that territory is higher than the expenditure it makes. At the same time, a fiscal surplus indicates that the revenue obtained is lower than the expenditure.

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