Understanding Autonomous Communities’ Powers and Finances
Other Institutions
The Ombudsman
The Ombudsman defends the rights and freedoms of citizens against abuse by the Regional Administration, based on law or administrative procedure.
The Court of Auditors
The Court of Auditors (CA) audits public accounts of the Public Administrations (AAPP), including those of the Autonomous Communities (CCAA), councils, and municipalities. It manages and controls public expenditure and accounting of the autonomous regions, municipalities, and the council.
The Advisory Council
The Advisory Council informs the government on any subject related to the CA. Its role is similar to that of the State Council regarding the State Government (Ministers + Prime Minister).
The Jurisdiction of the Autonomous Communities
There are three types of powers:
- Exclusive Powers: These powers are exclusively held by the CA. Traditionally, exclusive state powers include currency, borders (land and river), the Army, General Finance, external representation, and Justice. The exclusive powers of Catalonia are defined by Rule 149 of the EC.
- Shared Competences: These are shared powers where the state retains sovereignty but delegates management of the competition to the CA. Shared powers include education, justice (law and management of the ministry), Public Works, labor, economy, and agriculture.
- Concurrent Powers: These are powers exercised by both the state and the CA, often newly created. The distinction between shared and concurrent powers lies in the clarity of each party’s jurisdiction. In shared powers, each party knows their limits, while in concurrent powers, the governing authority is often unclear, leading to potential conflicts.
The Constitutional Court decides whether a power is shared or exclusive. When ownership of a competition is unclear, there is a tendency to duplicate efforts.
Forms of Deciding Jurisdiction
Powers are granted through three ways:
- The Organic Act, through which the state grants jurisdiction (exclusive or shared) to the CA.
- Reform of the Statute of Autonomy of the CA, where a reform includes new powers.
- Constitutional Tribunal (CT) rulings that assign competitors to the CA or the state.
Financing Regional Autonomous Communities
The CAAC need funds to operate, given their exclusive and shared competences. Articles 156 to 158 of the EC outline financing methods for the Communities, differentiating between regions of the common system and autonomous regions with special regimes, such as Navarra, the Basque Country, Ceuta, Melilla, and the Canary Islands.
A. The Common System
In this system, the CA manages state taxes through the Tax Agency of the Ministry of Finance. The agency collects taxes in these communities and sends them to Madrid for management.
B. The Statutory Scheme
In Navarra and the Basque Country, the Inland Revenue operates within their territory, and their own administration handles tax collection and sends a “fee” or “Annual Participation” to Madrid.
The state maintains a fund to re-balance the different autonomous regions. “Rich” and “solidarity” communities donate money to the poorest, aiming to equalize per capita income across the Spanish territory. This is known as the Inter-Territorial Compensation Fund, managed by the Ministry of Finance.