public spending

The first budget plan since 2017 is expected to be passed in the parliamentary session

Figure falls below Spanish average, while Madrid received 114% of planned budget

Development minister pledges to remedy situation, while Catalan counterpart says he will be "demanding" in upcoming bilateral summit

Following an appeal from the Spanish Government, the Constitutional Court has confirmed the cautionary halt adopted in January 2013 and it has now definitively banned the Catalan Executive's drug prescription fee. The measure had been adopted to reduce pharmaceutical spending by limiting superfluous drug demand in order to reduce the overall public spending. It was one of the austerity measures adopted by the Catalan Government in 2012 to reduce public deficit, in order to meet the strict deficit targets imposed by the Spanish Executive. The measure meant that Catalans had to pay a one-euro fee for each drug prescription, with a maximum of 60 euros per year and with many exceptions for people with chronic diseases, on low incomes and pensioners. On the same day, the Constitutional Court has backed the Catalan Executive's judicial fees, also appealed by Madrid.

The Spanish Social Security has published the list with the 417 drugs that from September will no longer be subsidised in order to reduce public spending and meet deficit targets. Most of them are some of the most consumed medicines for minor symptoms, such as heartburn, muscle pain, or diarrhoea. Since the measure is not popular among doctors, the Catalan Health Minister, Boi Ruiz, said that more expensive drugs with similar effects but not included in the list may now be prescribed, which would increase pubic healthcare spending instead of reducing it.

The Spanish Government will not respect the territorial funding scheme, approved by the Spanish Parliament and in a referendum, as it will only invest 11% of its regional spending in Catalonia. According to the current legislation, in order to compensate for an historical lack of infrastructural investment in Catalonia recognised by the Spanish Parliament and the Constitutional Court, the Spanish Government must invest at least the equivalent of Catalonia’s economic weight within Spain, which represents 18.7% in 2012. Furthermore it does not include €1 billion pending from 2008 and 2009, to which Catalonia is legally entitled.

Despite a 4.6% reduction in revenue, the Finance Department has been able to cut spending by €283 million when compared to 2010. The government had a deficit of €3.798 billion in the eleventh month of the year, equivalent to 1.9% of GDP. The aim of the Catalan Government is to close 2011 with a 2.66% budget deficit.