Financial Aspects of Political Decentralization in Spain

Abstract

The Spanish Constitution of 1978 introduced a dramatic change into the political organization by decentralizing the existing State into seventeen regional governments with a broad range of authority. This transformation involved a ‘services transfer process’ from the central government and a simultaneous evaluation of the financial resources needed by the regional governments.

The paper contains an analysis of the main features of this process, focusing on the various problems that have arisen in the estimation of the cost of the services transferred. Finally, some recommendations are offered for the future multilevel public financial system, which are in accordance with the present Spanish regulations on this subject.

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References

“Ley Orgánica 8/1980, de 22 septiembre, de Financiación de las Comunidades Autónomas”, (The Organic Act of Financing Autonomous Communities)

Boletín Oficial del Estado number 236 (October 1)

“Ley 12/1981, de 13 de mayo, por la que se aprueba el Concierto Económico con la Comunidad Autonoma del País Vasco” (Act approving the Economic Accord between the central government and the Basque Country)

Boletín Oficial del Estado number 127 (May 28)

“Ley Orgánica 13/1982, de 10 de agosto, de Reintegración y Amejoramiento del Régimen Foral de Navarra1” (Act approving the Economic Accord between the central government and Navarra)

Boletin Oficial del Estado number 195 (August 16)

“Ley 7/1984, de 31 de marzo, del Fondo de Compensación Interterritoriar (Interterritorial Compensation Fund Act)

Boletín Oficial del Estado number 80 (April 3)