Portal de Murcia
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A professor at the University of Murcia Isabel Martínez, former director of Budget and Finance in the Region of Murcia, has called a model of government funding "commensurate with the expenditure requirements of each level of government."
Professor Martinez, who has participated in the European Conference on Regional and Local Finance, held in Barcelona, said "it is urgent to debate the configuration of the Spanish state and federal model and design a new funding model."
Martinez spoke at a panel discussion that examined the impact of the crisis in the Spanish Haciendas and study the vertical imbalance that exists in Spain between the General State Administration, which maintains the management of much of the income tax when spending more active policies, such as Health and Education are in the hands of the autonomous communities.
The professor said that in recent years, unprecedented population growth recorded in Spain, spending on the regions has grown unevenly between 2002 and 2006, stressing that social costs are the most dynamic, growing 47 percent.
Against this, he said, the State Administration maintains that growth is only 29 percent of spending.
Source: Universidad de Murcia
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