Spain

Abstract

This chapter reviews the main features of the Spanish model of fiscal federalism and its evolution over the last four decades. It begins by describing the allocation of expenditure responsibilities among the three levels of government in the country: central, regional and local. The allocation of taxes between levels of government is then presented, followed by a discussion of the role of intergovernmental transfers, with particular reference to equalization transfers. Next, we address the macroeconomic coordination and control of the subcentral deficit and indebtedness. The chapter concludes by setting out the challenges for fiscal federalism in Spain in the coming years.