March 5, 2021

The Government concludes the distribution of the 16,000 million of the Covid fund with Madrid, Catalonia and Andalusia as the main recipients



The Official State Gazette (BOE) publishes this Wednesday orders from the Ministry of Finance that establish the distribution of the last two tranches of the COVID Fund for autonomous communities: in total 8,000 million euros that are added to the other 8,000 million already distributed. The Government thus culminates the allocation of the 16,000 million euros with which the Fund was endowed, created to guarantee the resources of the communities after the impact of the pandemic.

The first of the ministerial orders distributes the 3,000 million euros corresponding to the second healthcare tranche, which will be transferred in the coming days. The second distributes the 5,000 million to compensate for the decrease in regional income due to the lower economic activity derived from the pandemic, and will reach the autonomous communities in December.

The Treasury recalled in a statement that the objective of the COVID Fund is to provide the communities and cities of Ceuta and Melilla with the necessary financing to face the pandemic and guarantee quality public services for citizens.

The Fund, which has been distributed according to the impact that the coronavirus has had on health, education and economic activity, is not reimbursable, that is, the communities will not have to return the allocated resources nor will they generate debt or interests. The Treasury has underlined that this Fund has meant the largest transfer from the State to the autonomies outside the autonomous financing system.



Of the total allocation of 16,000 million euros that this mechanism has, 6,000 million were already distributed in July for the first health tranche and another 2,000 million, of the tranche associated with educational spending, were assigned to the communities last month of September.

The distribution criteria established in the regulations for the second and last healthcare tranche of 3,000 million are based on ICU admissions (25%); hospitalized patients (20%); the total PCR tests performed (10%); and in the equivalent protected population (45%).

The health variables used for the calculation have been those certified by the Ministry of Health on the basis of the data reported on October 31 by the autonomous communities.

The communities that will receive the most money from this second health section will be Madrid (614 million euros), Catalonia (474 ​​million), Andalusia (392 million), Comunitat Valenciana (263 million), Castilla y León (196 million), Basque Country ( 152 million), Castilla-La Mancha (151 million) and Galicia (150 million).

The fourth tranche of the COVID Fund, endowed with 5,000 million euros, will be distributed in December to the communities of common regime to compensate for their lower income due to the reduction in economic activity.

Specifically, of those 5,000 million, 4,200 million are distributed as follows: 60% based on the relative weight of the average recognized rights of the years 2017, 2018 and 2019 for the Tax on Patrimonial Transmissions and Documented Legal Acts, the Special Tax on Certain Means of Transportation and taxes on gambling, excluding payments made by the Tax Agency to each community in the years indicated in relation to the Tax on gambling activities.

The remaining 40% of those 4,200 million is distributed according to the adjusted population defined in the autonomous financing system.

The remaining 800 million that complete this section are reserved for distribution according to criteria associated with the budgetary impact in the field of public transport.

Of this amount, 34% will be distributed considering the services of regular interurban passenger transport; 13% considering metro, tram or rail services; 49% based on data from the Madrid Regional Transport Consortium and the Barcelona Metropolitan Transport Authority, and 4% will be assigned to the Canary Islands for its interurban transport.

Taking into account all the above, the communities that will receive the most resources from this stretch of 5,000 million will be Catalonia (1,107 million), Madrid (945 million), Andalusia (826 million) and Valencian Community (559 million).

In the total distribution of the 16,000 million from the COVID Fund, these four regions are the ones that receive the most money: Madrid (3,346 million), Catalonia (3,166 million), Andalusia (2,199 million) and Valencian Community (1,486 million).

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