Sobre el reparto de los derechos de déficit entre las Comunidades Autónomas: Una propuesta alternativa

In a highly decentralized country such as Spain, meeting national commitments on deficit and debt depends on the sustainability of regional public finances. At present, the deficit target of each region is defined according to its GDP share over national GDP. Although this approach is reasonable at a country level, the same procedure is not when there is a strong inter-regional equalization, as in Spain. The replacement of GDP by a budgetary magnitude would reinforce guarantees of regional financial sustainability. Hence we propose a rule based on the use of non financial revenue and real budgets in order to avoid perverse incentives. Moreover, our proposal keeps in mind the overlapping regional and provincial tiers in one-province Autonomous Communities.