Catalan Government Budget 2011 Source: Generalitat de Catalunya Date: 2011.

1. 1

2. Budget 2011
Austerity, social welfare, credibility, joint responsibility
2

3. Contents:
Budget Features
The Generalitat’s budget
Public sector budget
Macroeconomic framework
3

4. Budget Features
Budget Features
4

5. Budget 2011 guidelines
Austerity: guaranteeing the Generalitat’s public finances sustainability
Social welfare as a priority: maintaining the welfare state main services
Credibility: setting a severe, but attainable spending reduction goal
Joint responsibility: the final deficit will depend on the Central
Government’s cooperation and overall institutional loyalty
Budget Features
5

6. Starting point
Revenues: The Generalitat’s non-financial revenues fell by €3.4bn between 2009
and 2010, bringing them down to 2006 levels.
Expenditures: Non-financial expenditures rose by 60% between 2004 and 2010.
Deficit increase: The Generalitat’s budget deficit started increasing in 2007,
surpassing €5bn in 2008. In 2010, the deficit reached €7.6bn, or 3.86% of
Catalunya’s Gross Domestic Product.
Unsustainable increase of debt: Total debt reached 16.2% of GDP at the end of
2010, more than twice the 7.5% reached in 2007.
Budget Features
6

7. Government deficit and total debt
(As % of GDP in ESA terms)
% deficit / GDP
% debt / GDP
12,00
18,0
16.2
10,00
16,0
8,00
14,0
11.9
6,00
12,0
9.3
4,00
2,00
7.4
7.8
8.1
7.6
10,0
7.5
8,0
0,00
-2,00
6,0
-0.73
-0.39
-0.45
-0.22
-0.62
4,0
-2.60
-4,00
-2.41
2,0
.-3,86
-6,00
0,0
2003
2004
2005
2006
Budget deficit
Dèficit
2007
2008
2009
2010 (liq.prov.)
Deute
Debt
Source: Bank of Spain, Government of Spain –department of State Administration- and Generalitat de Catalunya –Department for the Economy and Knowledge.
Budget Features
7

8. Austerity
Strong commitment to achieve the European Union’s Stability and Growth
Pact goals
Keeping the 2010 debt increase rate is unsustainable
The welfare state can only be guaranteed by healthy government finances
The Generalitat’s financial health assures and reinforces self-government
Budget Features
8

9. Commitment to cut general fund non-financial expenditures
(in ESA terms)1
M€
Amount
Actual 2010 expenditures (general fund non-financial expenditures)
26,792.5
Commitment to reduce 10% of 2010 actual expenditures
-2,680.0
General fund non-financial expenditures ceiling (in ESA terms) for 2011
24,112.5
.
1Non-financial expenditures in ESA terms (European System of National and Regional Accounts ESA95) includes the Generalitat’s expenditure chapters 1 to 7 and capital contributions (chapter 8), to finance the
entities’ deficits and ESA entities deficit not financed by capital contributions. General fund expenditures do not include expenditures financed by earmarked revenues.
Budget Features
9

10. Non-linear distribution of general fund non-financial expenditures by departments1
M€
Budget 2010
Budget 2011
2011 / 2010
amount
amount
M€
%
change
Presidency
677.6
536.2
-141.4
-20.9
Governance and Institutional Relations
406.5
325.4
-81.1
-19.9
Economy and Knowledge
1,476.6
1,213.8
-262.8
-17.8
Education
5,222.7
4,834.2
-388.5
-7.4
Health
9,599.7
8,978.9
-620.8
-6.5
Home Affairs
1,222.6
1,144.6
-78.1
-6.4
Territory and Sustainability
1,793.3
1,362.8
-430.5
-24.0
Culture
334.4
282.3
-52.1
-15.6
Agriculture, Livestock, Fisheries, Food and Natural Environment
479.1
367.2
-111.9
-23.4
1,941.0
1,746.5
-194.5
-10.0
761.5
586.3
-175.2
-23.0
1,001.2
911.7
-89.6
-8.9
24,916.2
22,289.9
-2,626.3
-10.5
1,120.2
1,482.6
362.5
32.4
513.4
340.0
-173.4
-33.8
Total
26,549.8
24,112.5
-2,437.3
-9.2
Total 2010 Actual and Budget 20112
26,792.5
24,112.5
-2,680.0
-10.0
Social Welfare and Family
Enterprise and Labour
Justice
Subtotal departments
Debt (interests)
Others (higher bodies and other non-departmental funds)
1See
previous page footnote.
2010 expenditures exceed in some cases the initial budgeted amounts. This has been remarkable in the Department of Health.
2Actual
Budget Features
10

11. Evolution of budgeted and actual interest expenditures1
M€
1.600
1,477.9
1.400
1.200
1,118.7
1.000
919.2
808.5
800
678.7
561.1
600
440.7
480.4
491.2
796.6
696.9
570.3
504.7
400
200
0
2005
2006
2007
Budget
Debt interests growth in 2011 (Generalitat):
1Generalitat
2008
2009
2010
2011
Actual
Over 2010 budget
359.2
Over 2010 actual
558.7
administration. The overall budgeted public sector interest expenditures for 2011 are 1,869.6M€
Source: Generalitat de Catalunya Budget.
Budget Features
11

12. Expenditure cuts for 2011 (over 2010 initial estimates) have an effect on current,
capital and financial expenditures
M€
Generalitat’s budgeted expenditure cuts, by type
Amount
%
Employee compensation
-320.0
-5.8
Current expenditures on goods and services
-234.5
-15.0
Current transfers
-843.3
-4.6
Real investments
-474.1
-42.2
Capitals transfers
-371.6
-28.9
Capital contributions and loans
-591.7
-39.3
Contingency fund
-111.0
-74.0
-2,946.2
-10.0
Total expenditure reduction
1 Comparison
between 2010 and 2011 initial estimates of the Generalitat’s expenditures chapters 1 to 8. Chapter 3 expenditures (interests), which increase by 359.2 M€, are not included.
Budget Features
12

13. Social welfare as a priority (general fund non-financial expenditures in ESA terms)
Figures in M€
Budget 2010
Budget 2011
Departments
Amount
Amount
Healthcare
9,599.7
8,978.9
Education
5,222.7
4,834.2
Social welfare and family
1,941.0
1,746.5
Total welfare departments
16,763.4
15,559.6
Total departments
24,916.2
22,289.9
67%
70%
% welfare expenditures to total departments general
fund non-financial expenditures in ESA terms
Budget Features
13

14. Supporting economic recovery and boosting productive economy
More than 2,200M€ of new ICF credit lines for SMEs. Official credit actions increase
by 29%
Specific guarantee line of 350M€ assigned to business promotion and employment
activities
New model of vocational or technical education oriented to satisfy the needs of people
and companies. Reform the employment agency (SOC) to encourage employability
among the working people of Catalonia
Implement a plan called “Single-Window Business” which aims to simplify the
procedures with Public Administration
Budget Features
14

15. Credibility
Government’s strong commitment to address the Generalitat’s finances
The deficit reduction goal is tough, but attainable
Deficit reduction rigor slows down previous rates of debt increase
Responsibility and achieving commitments enhances credibility and confidence from
international markets and institutions
Prudence in revenue forecasting in order to avoid deviations
Fiscal year 2012 will deepen expenditure rationalisation and saving
Budget Features
15

16. Credibility in forecasting revenues
M€
Aggregation of initial estimates and actual amounts of the main taxes fully managed by Generalitat1, excluding inheritance and donations tax –impacted by regulatory changes in 2010 and
2011.
6.000
5,525
5.500
4,945
4,880
5.000
4.500
4,234
4,689
4.000
4,239
3,516
3,974
3.500
3,182
2,826
3.000
3,319
2,464
2.500
2,080
2,588
2,479
1,999
2.000
2,157
2,108
2009
2,022
2010
1.500
1.000
2002
2003
2004
2005
Initial estimates
2006
2007
2008
2011
Actual
Source: Department for the Economy and Knowledge
1Tax
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.
Budget Features
16

17. Generalitat’s revenues by chapter
M€
Budget 2010
Chapter
Budget 2011
2011 / 2010
Amount
%
Amount
%
%
change
1. Direct taxes
6,387.5
19.6
8,358.5
25.6
30.9
2. Indirect taxes
6,322.9
19.4
8,567.4
26.3
35.5
489.5
1.5
465.4
1.4
-4.9
9,532.7
29.3
3,890.1
11.9
-59.2
53.7
0.2
9.9
0.0
-81.7
22,786.3
70.1
21,291.2
65.3
-6.6
0.0
0.0
200.0
0.6
--
7. Capital transfers
313.6
1.0
813.5
2.5
159.4
Capital revenues
313.6
1.0
1,013.5
3.1
223.1
23,099.9
71.0
22,304.7
68.4
-3.4
0.0
0.0
210.1
0.6
--
23,099.9
71.0
22,514.8
69.0
-2.5
9,418.8
29.0
10,115.3
31.0
7.4
32,518.7
100.0
32,630.0
100.0
0.3
3. Fees, sales and other revenue
4. Current transfers
5. Property revenues
Current revenues
6. Real investments disposals
Total non-financial revenues
8. Financial assets1
Total revenues chapters 1 to 8
9. Financial liabilities (debt)2
Total revenues
1Forecasted
2Includes
revenues for 2011 include the sale of financial assets.
debt refinancing. Forecast of 5,622.4M€ of net debt variation for 2011. In 2010, the initial estimate was 7,624.3M€.
Budget Features
17

18. Generalitat’s non-financial revenues
M€
2010
2011
M€
%
Inheritance and donations tax1
Tax on capital transfers and documented legal acts
Other totally devolved taxes
Subtotal totally devolved taxes
Personal income tax (regional share)
VAT (share of Spanish central government tax)
Other taxes
Pending settlements of partially devolved Spanish central government taxes
Subtotal partially devolved taxes
Subtotal devolved taxes
899.7
1,466.0
1,262.7
3,628.4
5,472.5
2,438.8
1,464.7
-9,375.9
13,004.3
288.6
1,286.6
978.0
2,553.2
8,055.9
4,619.0
2,072.5
-80.3
14,667.1
17,220.2
-611.1
-179.4
-284.7
-1,075.2
2,583.4
2,180.2
607.8
-5,291.1
4,215.9
-67.9
-12.2
-22.5
-29.6
47.2
89.4
41.5
-56.4
32.4
Equalization transfer
Equalization transfer pending settlements
Advance of new funding system resources
Global Sufficiency Fund (advance)
Fundamental Services Guarantee Fund (advance)
Rest of resources of the funding system2
Subtotal funding system transfers
Total funding system revenues
Rest of general fund revenues3
Local Governments share of Central Government’s Revenues (earmarked)
Rest of earmarked revenues4
Total Generalitat non-financial revenues
Total general fund non-financial revenues
Total earmarked non-financial revenues
2,508.3
-2,372.0
--1,436.4
6,316.7
19,321.0
292.3
2,386.3
1,100.3
23,099.9
19,554.7
3,545.2
--57.8
-1,840.1
-1,460.0
102.0
424.2
17,644.4
1,107.6
2,670.2
882.4
22,304.7
18,684.1
3,620.7
------1,334.4
-5,892.5
-1,676.6
815.3
284.0
-217.9
-795.2
-870.7
75.5
------92.9
-93.3
-8.7
278.9
11.9
-19.8
-3.4
-4.5
2.1
Concept
1The
2In
Var. 2011 / 2010
estimates for 2011, without the 2011 regulation changes, would be 339.8M€. After the changes, 2011 revenues fall by 51.2M€.
2010, it included the wealth tax abolition compensation, the regional police funding and the health funding agreement funds, which have been integrated into the funding system.
.
3 In
2011, it includes the resources of the 3rd additional provision of Catalonia’s Statute of Autonomy.
4Includes the resources provided by the Spanish Central Government and the European Union to be used for specific programmes and fee revenues earmarked to specific expenditures.
Budget Features
18

19. Generalitat’s expenditures by chapter
(includes general fund expenditures and expenditures financed by earmarked funds)
M€
Chapter
Budget 2010
Budget 2011
2011 / 2010
Amount
%
Amount
%
% change
1. Employee compensation
5,479.2
16.8
5,159.2
15.8
-5.8
2. Current expenditures on goods and services
1,564.6
4.8
1,330.1
4.1
-15.0
3. Interests and financial fees
1,118.7
3.4
1.477.9
4.5
32.1
4. Current transfers
18,494.4
56.9
17,651.1
54.1
-4.6
5. Contingency fund
150.0
0.5
39.0
0.1
-74.0
26,806.9
82.4
25,657.3
78.6
-4.3
6. Real investments
1,124.2
3.5
650.1
2.0
-42.2
7. Capital transfers
1,286.1
4.0
914.6
2.8
-28.9
Capital expenditures
2,410.4
7.4
1,564.7
4.8
-35.1
29,217.3
89.8
27,222.0
83.4
-6.8
1,506.9
4.6
915.2
2.8
-39.3
30,724.2
94.5
28,137.2
86.2
-8.4
1,794.5
5.5
4,492.9
13.8
150.4
32,518.7
100.0
32,630.0
100.0
0.3
Current expenditures
Total non-financial expenditures
8. Financial assets1
Total expenditures chapters 1 to 8
9. Financial liabilities2
Total expenditures
1Capital
2Debt
contributions and loans.
repayment expenditures.
Budget Features
19

20. Main changes in the Generalitat de Catalunya’s budget
Figures in M€
Budget
2010
Budget
2011
Change 2011 / 2010
M€
Total budget
%
32,518.7
32,630.0
111.3
0.3%
Debt amortisation(*)
1,794.5
4,492.9
2,698.3
150.4%
Debt interest expenditures(**)
1,118.7
1,477.9
359.2
32.1%
29,605.5
26,659.3
-2,946.2
-10.0%
Expenditures related to:
Other expenditures
(*) Expenditures are linked to the debt redemption calendar.
(**) Figures computed on a budget to budget comparison . However, when comparing 2011’s budget figures to the final data available for 2010, debt interest expenditures have risen by 558.7M€, or 60.8%, from
2010.
Budget Features
20

21. Detail of the evolution of the main expenditure policies and programs
Figures in M€
Budget 2010
Budget 2011
2011 / 2010
Expenditure policies and programs
2011 expenditure
moves to levels of
Amount
Amount
Var. %
General education1
4,784.6
4,579.9
-4.3%
2008
Social protection
1,992.7
1,882.8
-5.5%
2009
Health
9,606.3
9,063.2
-5.7%
2008
Security and civil protection
1,199.3
1,117.8
-6.8%
2009
Justice
931.1
848.0
-8.9%
2008
Social media
376.6
323.2
-14.2%
2008
Employment promotion
728.6
618.7
-15.1%
2009
Housing and other urban projects
306.3
256.2
-16.4%
2007
Running institutions and general administration
1,938.5
1,565.0
-19.3%
before 20062
Transportation
1,253.8
866.0
-30.9%
before 20062
Rest of programs
6,486.3
5,533.6
-14.7%
2006
29,604.0
26,654.5
-10.0%
2007
2,914.7
5,975.5
105.0%
increases
32,518.7
32,630.0
0.3%
Subtotal programs, except debt expenditures
Public debt repayment and financial expenditures3
Total Generalitat expenditures
12011 includes the effect of reclassifying the administration personnel of education centers in the general education
2Policy and program expenditure classification has been used since 2006. There is no available data before 2006.
3Includes debt and interests refinancing.
program.
Budget Features
21

22. Generalitat’s non-financial revenues and expenditures since 2004
Figures in M€
35.000
30.000
25.000
20.000
15.000
10.000
2004
2005
2006
2007
Non-financial no financers
Ingressos revenues
2008
2009
2010
2011
Non-financial no financeres
Despeses expenditures
Source: Department for the Economy and Knowledge .
Budget features
22

23. Deficit (in ESA terms) forecast in the 2011 Budget
M€
2011
Generalitat non-financial revenues
22,304.7
Generalitat non-financial expenditures
27,222.0
Generalitat non-financial budget position
-4,917.3
ESA adjustments*
Non-financial budget position in ESA terms
% deficit over GDP
-491.1
-5,408.4
-2.66%
Deficit falls by 2,200M€ compared with 2010 actual amounts (-29%)
*ESA adjustments includes the non-financial position of entities classified as public administration (PA-ESA) (-414.5 M€), capital contributions assimilated to non-financial expenditures to entities not classified as
PA-ESA(-94.7M€), the rest of adjustments (lower expenditure execution, accrual adjustments, revenue shortfall risks, etc., (-120 M€) and the fifth part of a negative pending settlement from 2008 (138,1M€).
Budget Features
23

24. Deficit (in ESA terms) forecast in the 2011 Budget
As % of GDP
The effort made by the Generalitat to reduce the deficit is higher than the effort planned for the
rest of the autonomous communities
2010
2011
Change
Overall Autonomous Communities deficit goal
2.40
1.30
-1.10
Generalitat deficit
3.86
2.66
-1.20
Budget Features
24

25. Generalitat de Catalunya’s fiscal program
Deficit (in ESA terms) over GDP
0,00
-0,50
-0.22
-0,62
-1,00
-1.10
-1.00
-1.30
-1,50
-2,00
-2,50
-2.41
-2.60
-2.66
-3,00
-3,50
-4,00
-3.86
-4,50
2006
Actual
1Fiscal
2007
Actual
2008
Actual
2009
Actual
2010
Actual (prov.)
2011
Budget
2012
2013
2014
CPFF1 2012-2014 goals
and Financial Policy Board
Source: Department for the Economy and Knowledge and INE.
Budget Features
25

26. Catalunya’s public debt since 2006
Figures in M€
Debt (M€)
40.000
36.7
35.000
35,0
31,886
30.000
30,0
26.8
23,326
25.000
18,848
20.000
15.000
Annual % change
in
public debt
40,0
37,443
14,043
25,0
17.4
23.8
20,0
14,863
15,0
10,0
10.000
5.8
5.000
5,0
1.8
0,0
0
2006
2007
2008
Deute
Public debt
2009
2010
2011 (pr)
% Annual anual del deute
variació % change in public debt
Source: Bank of Spain (2006-2010) and Generalitat de Catalunya: Departament for the Economy and Knowledge.
Budget Features
26

27. Other key elements of the deficit
Prudent revenue forecasts
Revenue estimates are coherent with the ongoing weak economic situation
Revenues that depend on the Central Government’s joint responsibility (competitiveness
fund, institutional loyalty and other additional funds) are not included
ESA adjustments variability
The final calculation depends on the ongoing review of the European System of Accounts’
(ESA) application range
Budget Features
27

28. Possible 2011 fiscal improvements in a scenario of joint
responsibility
M€
Amount
Deficit forecast in the 2011 Budget initial estimates(*)
% GDP
-5,408
-2.66%
Competitiveness Fund collection
1,450
Additional resources by using an alternative calculation of the 3rd additional
provision of Catalonia’s Statute of Autonomy and institutional loyalty
1,200
Higher investments disposal (if Central Government transfers assets)
Deficit
200
-2,558
-1.26%
(*) Deficit in ESA terms.
Budget Features
28

29. Generalitat de Catalunya’s fiscal programme in a scenario of joint
responsibility with the Central Government
Deficit (in ESA terms) over GDP
0,00
-0,50
-0.22
-0.62
-1,00
-1.10
-1.26
-1,50
2012
2013
2014
-1.30
2011
Budget
-1.00
-2,00
-2,50
-2.41
-2.60
-3,00
-3,50
-4,00
-3.86
-4,50
2006
Actual
2007
Actual
2008
Actual
2009
Actual
2010
Actual (prov.)
CPFF 2012-2014 goals
Source: IGAE and Department for the Economy and Knowledge.
Budget Features
29

30. Some specific issues about the Generalitat’s
public sector consolidated budget
Budget Features
30

31. Generalitat public sector entities included in the budget
(current situation)
Number of
entities1
Generalitat2
1
Catalan Healthcare Service, Catalan Institute of
Health and Catalan Institute of Assistance and Social
Services
3
Autonomous administrative entities
Autonomous commercial and financial entities
25
5
Public law companies
46
Trading companies
52
Consortiums
62
Foundations
46
Total Generalitat public sector entities
Other PA-ESA entities non-majority shareholding
Total entities
1.
2.
The Government plans simplify,
rationalise and redefine the public
sector institutional network
240
28
268
GC (Generalitat de Catalunya): Includes 12 departments, 5 non-departmental
funds and 6 higher 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
(including those in which the Generalitat does no have a majority stake).
Existing entities at the beginning of the fiscal year.
See definitions at the box on the right side of the slide.
Budget Features
31

32. Generalitat public sector budgets1
M€
Budget 2010
Budget 2011
2011 / 2010
Amount
%
Amount
%
% change
Generalitat
32,518.7
53.2
32,630.0
55.3
0.3
Catalan Healthcare Service, Catalan Institute of Health
and Catalan Institute of Assistance and Social Services
14,087.8
23.1
13,436.7
22.8
-4.6
Autonomous administrative entities
926.0
1.5
785.3
1.3
-15.2
Autonomous commercial and financial entities
137.9
0.2
131.2
0.2
-4.8
Public law companies
6,667.2
10.9
5,466.8
9.3
-18.0
Trading companies
3,025.8
5.0
2,345.0
4.0
-22.5
Consortiums
3,098.8
5.1
3,506.6
5.9
13.2
Foundations
648.1
1.1
705.3
1.2
8.8
61,110.3
100.0
59,007.0
100.0
-3.4
Total
Internal transfers
-21,411.0
-19,653.0
-8.2
Total consolidated2
39,699.3
39,354.0
-0.9
1Includes
2
financial operations.
Total consolidated amounts in the 2010 and 2011 Budgets are not fully comparable because of a change in the number of entities,.
Budget Features
32

33. Total investment: budgeted estimates and amounts financed using deferred
payment methods
M€
8.000
7.000
6,581.2
6,177.1
5,906.5
5,778.3
6.000
5,284.6
5,099.7
5.000
3,901.6
4.000
3,138.2
3.000
2,222.4
2.000
1,297.8
1,367.6
1998
1999
1,567.4
2,450.4
1,795.6
1.000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Budget Features
33

34. Future payments linked to investments made using deferred payment methods
Figures in M€
2011
2012
2013
2014
Financing of road works
109.9
306.7
111.6
58.9
Financing of transport and mobility
211.2
366.8
278.1
91.9
4.6
35.9
50.8
14.7
Underground Line 9
278.3
472.4
509.6
536.1
Other infrastructure and equipment concessions
133.5
180.1
213.5
251.1
Land rights related to equipment
79.6
93.5
115.3
131.9
Other projects
28.6
26.0
26.0
7.0
845.5
1,481.5
1,305.0
1,091.6
Financing of irrigation systems
Total
Budget Features
34

35. Job positions included in the public sector consolidated budget
Number of job positions
2010
2011
2011/2010
number
homogeneous1
%
Executive personnel
247
211
-36
-14.6%
Temporary consulting personnel
303
203
-100
-33.0%
Other executive personnel (public sector entities)
171
135
-36
-21.1%
Subtotal executive and consulting personnel
721
549
-172
-23.9%
168,332
168,113
-219
-0.1%
62,831
62,351
-480
-0.8%
231,884
231,013
-871
-0.4%
Subtotal civil servants
Subtotal private regulation personnel
Total public sector
1Includes
personnel transfers and extensions done during fiscal year 2010 and the effect of the incorporation of new entities in the 2011 Budget .
Budget Features
35

36. Budget of the Generalitat de Catalunya
Budget of the Generalitat de Catalunya
36

37. Generalitat’s revenues by chapter
M€
Budget 2010
Chapter
Budget 2011
2011 / 2010
Amount
%
Amount
%
%
change
1. Direct taxes
6,387.5
19.6
8,358.5
25.6
30.9
2. Indirect taxes
6,322.9
19.4
8,567.4
26.3
35.5
489.5
1.5
465.4
1.4
-4.9
9,532.7
29.3
3,890.1
11.9
-59.2
53.7
0.2
9.9
0.0
-81.7
22,786.3
70.1
21,291.2
65.3
-6.6
0.0
0.0
200.0
0.6
--
7. Capital transfers
313.6
1.0
813.5
2.5
159.4
Capital revenues
313.6
1.0
1,013.5
3.1
223.1
23,099.9
71.0
22,304.7
68.4
-3.4
0.0
0.0
210.1
0.6
--
23,099.9
71.0
22,514.8
69.0
-2.5
9,418.8
29.0
10,115.3
31.0
7.4
32,518.7
100.0
32,630.0
100.0
0.3
3. Fees, sales and other revenue
4. Current transfers
5. Property revenues
Current revenues
6. Real investments disposals
Total non-financial revenues
8. Financial assets1
Total revenues chapters 1 to 8
9. Financial liabilities (debt)2
Total revenues
1Forecasted
2Includes
revenues for 2011 include the sale of financial assets.
debt refinancing. Forecast of 5,622.4M€ of net debt variation for 2011. In 2010, the initial estimate was 7,624.3M€.
Budget of the Generalitat de Catalunya
37

38. Generalitat funding system revenues
M€
Concept
Inheritance and donations tax(*)
Wealth tax
Tax on transfers and documented legal acts
Gambling taxes
Energy tax
Vehicle registration tax
Tax on retail sales of certain hydrocarbons
Totally devolved taxes
Personal income tax (regional share)
VAT (share of Spanish central government tax)
Tax on tobacco products (share of Spanish central government tax)
Tax on alcoholic drinks (share of Spanish central government tax)
Hydrocarbon tax (share of Spanish central government tax)
Pending settlements of partially devolved taxes (**)
Partially devolved taxes
Total devolved tax revenues
Equalisation transfer
Healthcare specific funds(***)
Health financing transfers
Pending settlements of equalisation transfer
Advance of new funding system resources(****)
Global Sufficiency Fund (advance)
Fundamental Services Guarantee Fund (advance)
Total transfer revenues
Total funding system revenues
2010
Budget
899.7
0.0
1,466.0
309.2
280.1
321.5
351.9
3,628.4
5,472.5
2,438.8
680.1
81.1
703.5
0.0
9,375.9
13,004.3
2,508.3
103.5
103.1
0.0
3,601.8
--6,316.7
19,321.0
2010
Actual
658.8
13.1
1,398.2
285.9
280.1
137.0
272.9
3,046.1
5,472.5
2,438.8
680.1
81.1
703.5
0.0
9,375.9
12,422.0
2,495.6
84.4
103.1
0.0
3,515.7
--6,198.8
18,620.8
2011
Budget
288.6
0.0
1,286.6
308.3
279.3
110.0
280.4
2,553.2
8,055.9
4,619.0
953.7
122.3
996.6
-80.3
14,667.1
17,220.2
-102.0
--57.8
-1,840.1
-1,460.0
424.2
17,644.4
2011 / 2010
Budget
% var.
-67.9
--12.2
-0.3
-0.3
-65.8
-20.3
-29.6
47.2
89.4
40.2
50.7
41.7
-56.4
32.4
--1.4
------93.3
-8.7
(*) The estimates for 2011, without the 2011 regulation changes, would be 339.8M.€ After the changes, 2011 revenues fall by 51.2M€.
(**) Pending settlements of specific consumption taxes, Personal income tax and VAT.
(***) Health cohesion fund, temporary incapacity control and accidents and foreign invoicing.
(****) Includes Wealth tax elimination compensation and regional police financing.
El pressupost de la Generalitat de Catalunya
38

39. Generalitat’s expenditures by section
(includes general fund expenditures and expenditures financed by earmarked funds)
M€
Budget 20101
Budget 2011
2011 / 2010
Section
Amount
%
Amount
%
% change
Higher bodies and other bodies
108.9
Presidency
694.6
2.6
544.7
2.3
-21.6
Governance and Institutional Relations
445.8
1.7
342.7
1.4
-23.1
Economy and Knowledge
1,593.4
6.0
1,279.9
5.4
-19.7
Education
5,317.6
19.9
4,894.3
20.7
-8.0
Health
9,709.4
36.4
9,127.9
38.6
-6.0
Home Affairs
1,301.6
4.9
1,203.0
5.1
-7.6
Territory and Sustainability
2,013.2
7.5
1,389.5
5.9
-31.0
Culture
366.4
1.4
302.4
1.3
-17.5
Agriculture, Livestock, Fisheries, Food and Natural Environment
576.1
2.2
429.7
1.8
-25.4
Social Welfare and Family
2,216.0
8.3
2,085.5
8.8
-5.9
Enterprise and Labour
1,456.8
5.5
1,126.9
4.8
-22.6
Justice
1,007.3
3.8
917.8
3.9
-8.9
26,698.3
100.0
23,644.3
100.0
-11.4
Total departments1
95.1
Debt (includes refinancing)
Local Governments share of Central Government’s Revenues
Rest of non-departmental sections
2,914.7
2,386.3
410.6
5,975.5
2,670.2
245.0
Total non-departmental funds
5,711.5
8,890.7
32,518.7
32,630.0
Total expenditures
1. Budget 2010 shown in a departmental structure homogeneous to Budget 2011.
Budget of the Generalitat de Catalunya
39

40. Generalitat’s expenditures by chapter
M€
Chapter
Budget 2010
Budget 2011
2011 / 2010
Amount
%
Amount
%
% change
1. Employee compensation
5,479.2
16.8
5,159.2
15.8
-5.8
2. Current expenditures on goods and services
1,564.6
4.8
1,330.1
4.1
-15.0
3. Interests and financial fees
1,118.7
3.4
1.477.9
4.5
32.1
4. Current transfers
18,494.4
56.9
17,651.1
54.1
-4.6
5. Contingency fund
150.0
0.5
39.0
0.1
-74.0
26,806.9
82.4
25,657.3
78.6
-4.3
6. Real investments
1,124.2
3.5
650.1
2.0
-42.2
7. Capital transfers
1,286.1
4.0
914.6
2.8
-28.9
Capital expenditures
2,410.4
7.4
1,564.7
4.8
-35.1
29,217.3
89.8
27,222.0
83.4
-6.8
1,506.9
4.6
915.2
2.8
-39.3
30,724.2
94.5
28,137.2
86.2
-8.4
1,794.5
5.5
4,492.9
13.8
150.4
32,518.7
100.0
32,630.0
100.0
0.3
Current expenditures
Total non-financial expenditures
8. Financial assets1
Total expenditures chapters 1 to 8
9. Financial liabilities2
Total expenditures
1Capital
2Debt
contributions and loans.
repayment expenditures.
Budget of the Generalitat de Catalunya
40

41. Public sector consolidated budget
Public sector consolidated budget
41

42. Generalitat public sector budgets1
M€
Budget 2010
Budget 2011
2011 / 2010
Amount
%
Amount
%
% change
Generalitat
32,518.7
53.2
32,630,0
55.3
0.3
Catalan Healthcare Service, Catalan Institute of Health
and Catalan Institute of Assistance and Social Services
14,087.8
23.1
13,436,7
22.8
-4.6
Autonomous administrative entities
926.0
1.5
785,3
1.3
-15.2
Autonomous commercial and financial entities
137.9
0.2
131,2
0.2
-4.8
Public law companies
6,667.2
10.9
5,466,8
9.3
-18.0
Trading companies
3,025.8
5.0
2,345,0
4.0
-22.5
Consortiums
3,098.8
5.1
3,506,6
5.9
13.2
Foundations
648.1
1.1
705,3
1.2
8.8
61,110.3
100.0
59,007,0
100.0
-3.4
Total
Internal transfers
-21,411.0
-19,653,0
-8.2
Total consolidated2
39,699.3
39,354,0
-0.9
1Includes
2
financial operations.
Total consolidated amounts in the 2010 and 2011 Budgets are not fully comparable because of a change in the number of entities,.
Public sector consolidated budget
42

43. Generalitat’s public sector revenues by chapter
M€
Budget 2010
Chapter
Amount
Budget 2011
%
Amount
2011 / 2010
%
%
change
1. Direct taxes
6,387.5
16.1
8,358.5
21.2
30.9
2. Indirect taxes
6,322.9
15.9
8,567.4
21.8
35.5
3. Fees, sales and other revenue
2,941.3
7.4
3,099.0
7.9
5.4
10,049.3
25.3
4,431.6
11.3
-55.9
211.1
0.5
301.6
0.8
42.9
25,912.1
65.3
24,758.1
62.9
-4.5
694.6
1.7
436.5
1.1
-37.2
7. Capital transfers
1,155.8
2.9
988.5
2.5
-14.5
Capital revenues
1,850.4
4.7
1,425.0
3.6
-23.0
27,762.5
69.9
26,183.1
66.5
-5.7
504.6
1.3
1.019.3
2.6
102.0
Total revenues chapters 1 to 8
28,267.1
71.2
27,202.4
69.1
-3.8
9. Financial liabilities (debt)2
11,432.1
28.8
12,151.6
30.9
6.3
Total revenues
39,699.3
100.0
39,354.0
100.0
-0.9
4. Current transfers
5. Property revenues
Current revenues
6. Real investments disposal
Total non-financial revenues
8. Financial assets1
1Forecasted
2Includes
revenues for 2011 include the sale of financial assets.
debt refinancing.
Public sector consolidated budget
43

44. Generalitat’s public sector expenditures by chapter
M€
Chapter
Budget 2010
Budget 2011
2011 / 2010
Amount
%
Amount
%
% change.
10,144.0
25.6
9,649.7
24.5
-4.9
2. Current expenditures on goods and services
8,516.2
21.5
8,316.4
21.1
-2.3
3. Interests and financial fees
1,439.4
3.6
1,869.6
4.8
29.9
4. Current transfers
9,799.5
24.7
9,221.6
23.4
-5.9
5. Contingency fund
150.0
0.4
39.0
0.1
-74.0
30,049.2
75.7
29,096.3
73.9
-3.2
4,163.6
10.5
2,231.0
5.7
-46.4
965.2
2.4
740.6
1.9
-23.3
5,128.8
12.9
2,971.6
7.6
-42.1
35,178.0
88.6
32,067.9
81.5
-8.8
1,740.6
4.4
1,861.6
4.7
6.9
36,918.6
93.0
33,929.4
86.2
-8.1
2,780.6
7.0
5,424.6
13.8
95.1
39,699.3
100.0
39,354.0
100.0
-0.9
1. Employees compensation
Current expenditures
6. Real investments
7. Capital transfers
Capital expenditures
Total non-financial expenditures
8. Financial assets1
Total expenditures chapters 1 to 8
9. Financial liabilities2
Total expenditures
1Capital
2Debt
contributions and loans.
repayment expenditures.
Public sector consolidated budget
44

45. Macroeconomic framework
Macroeconomic framework
45

46. Macroeconomic forecast- Catalonia
% annual change –unless otherwise indicated
2009
2010
-4,2
0,1
0.9
207,237
-3.7
209,727
1.2
214,131
2.1
-5.2
-0.3
0.0
-4.2
6.1
-14.6
-17.9
-11.7
1.7
0.2
-5.6
-1.5
-10.7
1.1
-1.3
-2.0
2.1
-6.1
Foreign trade balance1
1.0
0.3
0.9
Foreign trade balance3
2.2
1.0
0.7
-12.3
-17.0
-1.2
12.6
8.4
-0.7
6.2
3.7
0.2
0.6
1.1
1.2
-259.3
-7.5%
16.2%
-57.6
-1.8%
17.8%
-6.3
-0.2%
18.0%
GDP market prices (% real change)
GDP (M€)
GDP (% nominal change)
Internal demand1
Household consumption
Public sector consumption2
Investment3
Capital goods and others
Construction
Exports of goods and services
Imports of goods and services
Balance with the rest of Spain3
2011
Prices
GDP Deflator
Labour market
Jobs created (thousands)4
Jobs created (% change)4
Estimated unemployment rate (EPA) (% unemployed/active population)
1. Contribution to growth.
2. Includes non-profit household consumption.
3. Includes stock variation
4. Full-time jobs .
Source: Idescat and Department for the Economy and Knowledge.
.
Macroeconomic framework
46

47. Real GDP
% annual change
5,0
4,0
3,0
3.8
3.7
3.4
3.3
3.3
3.2
2.6
2,0
1,0
0.9
0,0
0.1
0.1
-1,0
-2,0
-3,0
-4,0
-4.2
-5,0
2001
2002
2003
2004
Catalunya
2005
2006
Espanya
Spain
2007
2008
2009
2010 (pr)
2011 (pr)
Zona euro
Eurozone
(pr) estimate
Sources: IDESCAT, INE, IMF, Economy Ministry and Department for the Economy and Knowledge.
Macroeconomic framework
47

48. Internal and external demand
% contribution to growth
6,0
5.4
4.7
4,0
4.4
4.3
3.7
3.5
3.1
2,0
1.1
1.0
0.9
0.3
0.0
0,0
-0.1
-0.5
-0.3
-0.3
-1.0
-2,0
-1.1
-1.5
-1.2
-1.0
-4,0
-5.2
-6,0
2001
2002
2003
2004
Demanda interna
Internal demand
2005
2006
2007
External demand
Demanda externa
2008
2009
2010
2011 (pr)
PIB real GDP
Real
(pr) estimate
Source: Idescat.
Macroeconomic framework
48

49. Housing
% interannual change, 12-month average
40
20
0
-20
-40
-60
-80
Started
Iniciats
Completed
Acabats
Source: Ministry of Development
Macroeconomic framework
49

50. Imports and exports
% interannual change, 12-month average
25,0
20,0
15,0
10,0
5,0
0,0
-5,0
-10,0
-15,0
-20,0
-25,0
Exportacions
exports
Importacions
imports
Source: Idescat , based on Spanish Tax Administration Agency data.
Macroeconomic framework
50

51. Prices in Catalunya, Spain and the Eurozone
% interannual change
6,0
5,5
5,0
4,5
4,0
3,5
3,0
2,5
2,0
1,5
1,0
0,5
0,0
-0,5
-1,0
-1,5
Catalunya
Espanya
Spain
Zona euro (IPCH)
Eurozone
Source: INE and Eurostat.
Macroeconomic framework
51

52. Unemployment rate (EPA)
% active population
25,0
22,5
20,0
18.8
17.8
17.1
17,5
18.0
2010
2011
(pr)
16.2
14.4
15,0
12,5
10.7
10,0
10.1
8.9
10.1
9.7
9.0
8.6
7.0
7,5
6.6
6.5
2005
2006
2007
5,0
1996
1997
1998
1999
2000
2001
2002
Catalunya
2003
2004
Spain
Espanya
2008
2009
Zona euro
Eurozone
(pr) estimate
Source: Idescat, INE, Eurostat, Department for the Economy and Knowledge, IMF, Economy Ministry
Macroeconomic framework
52

53. www.gencat.cat/economia/pressupostos
53