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The Quota for the base year

The Quota Law sets that the net quota for the base year shall be determined by applying the attribution rate to the total amount of the charges not assumed by the Autonomous Community and by making the relevant adjustments and compensations. The calculation scheme is as provided below in accordance with Appendix I of the abovementioned law.

thousands of euros



State Budget: expenditure



Charges assumed by the Autonomous Community



Total non-assumed charges (1 – 2)

  • Inter-territorial Compensation Fund
  • Transfer to public entities
  • Interests and payments of principal on State debts



Non-assumed charges to be financed by the Autonomous Community



Non-agreed taxes



Non-tax income



Adjustment for agreed direct taxes



Total adjustments and compensations for State income attributed to the Basque Country Autonomous Community (5 + 6 + 7)



Budget Deficit



Net Quota (4 – 8 – 9)



Other compensations

  • Álava Compensations



Net amount payable (10 – 11)


1. State Budget: expenditure

The starting point is the total expenditure of the Central Government, as accounted in the State General Budget.

2. Charges assumed by the Autonomous Community

To follow, the sums allocated to the competences assumed by the Autonomous Community as a result of the transfers carried out by virtue of the Statute of Autonomy. This way how much the Central Government spends in the rest of the State in competences, that are executed by the Basque Institutions in the Basque Autonomous Community, is determined.

3. Total non-assumed charges

If the expenditure in competences executed by the Autonomous Community of the Basque Country is subtracted from the total State expenditure, the obtained result is the non-assumed charges, that is, the State expenditure in competences non-assumed by the Basque Country. The Quota Law determines the methodology to calculate the total amount of the non-assumed charges, by deducting from the total expenditure allocated in the State budget the net budget allocation corresponding to the assumed competences by the Autonomous Community, and it also names three concepts to be regarded, inter alia, as non-assumed charges:

  • The inter-territorial Compensation Fund. Article 158.2 of the Spanish Constitution designs an essential tool in order to carry out the mandate laid down in article 138.1, when stating that, with the aim of redressing inter-territorial economic imbalances and implementing the principle of solidarity, a Compensation Fund shall be set up for investment expenditure in the relatively less developed Communities. The consideration of these sums as non-assumed charges makes the contribution of the Basque Country to the solidarity principle effective.
  • Transfers or subsidies granted by the State to public entities, provided that the competences exercised thereby have not been assumed by the Autonomous Community of the Basque Country. In this case, the financing of the non-assumed charges by the Basque Country, that the State indirectly executes via the budgets of public entities not included in the Central government budget, is guaranteed.
  • The interest payments and repayments of principal on all State debts. The consideration of non-assumed charge of the financial cost of the State debt is the logic consequence of the compensation in the Quota of the State budget deficit.
4. Non-assumed charges to be financed by the Autonomous Community

The Total non-assumed charges fixes how much the central government spends in the whole of the Spanish territory in non-assumed charges by the Autonomous Community. In order to obtain the portion of the cost to be paid by the Basque Country, the attribution rate is applied. The attribution rate or imputation index must be basically equal to the rent of the Basque Autonomous Community relative to the one of the State. In practice, this rate has remained constant at 6.24 per cent since 1981 when the Quota system was put into force.

In any case, to obtain the non-assumed burdens to be financed by the ACBC, the overall expenditure on non-assumed competences is multiplied by 6.24%. The result is the amount of the non-assumed burdens to be financed in the base year of the five-year period.

5. Non-agreed taxes

They are the State income allocated in Chapters 1 to 3 derived from non-agreed taxes and from fees and public prices for services not assumed by the Basque Country. The most relevant entry in this group is the custom duties. They are, therefore, the sums collected by the State and used to finance non-assumed charges. The amount of non-concerted taxes is estimated by applying 6.24% to the total amount obtained in Spain as a whole by the State for the aforementioned concepts.

6. Non-tax income

They are the non-tax revenue collected by the State but attributed to the Basque Country. They are the sums allocated in Chapters 4 to 8 of the State budget (current and capital transfers, real state income, dales of investments and variation in financial assets). They are again estimated by applying the imputation index to the total amount obtained in Spain for these concepts.

7. Adjustment for agreed direct taxes

This is the compensation set to improve the accuracy of the estimation of the tax direct income attributed to the Basque Country and the rest of the State. In both cases, the buyers of State bonds and the State civil servants who provide their services to the Central administration in the Basque territory, shall deduct the exacted withholding taxes on their income (and paid to the Treasury of the Central government) in their income tax returns which correspond to the Historical Territories, being the result that the withholding taxes are paid to the State and are refunded by the Autonomous Community, which requires the compensation pursued by the adjustment set in this paragraph 7.

8. State income attributed to the Basque Country Autonomous Community

The sum of the above three items is the total revenue obtained by the central government attributable to the Basque Country Autonomous Community.

9. Budget Deficit

The deficit is another of the entries within the non-agreed income and, as such, the percentage of income from deficit corresponding to the Basque Autonomous Community has to be attributed to the Basque Country, in order to guarantee that the Autonomous Community finance the non-assumed charges in the same way as the State does. Therefore, the portion of deficit attributed to the Basque Country in accordance with the allocation in the State General Budget is subtracted from the Quota and the payment of interest and the State debt redemption is included as non-assumed charge.

The relevant deficit is again estimated by the application of the attribution rate (6.24%) to the total deficit resulting from the State budget.

10. Net Quota

This is the sum effectively paid for non-assumed competences or charges. It is obtained by subtracting, from the total expenditure to be paid, the sums corresponding to the State collection of the attributed income to the Basque Country Autonomous Community and the portion of expenditure which is financed via deficit.

11. Other compensations

Now that the compensations envisaged in the previous Quota Act – Article 6.2 and the Single Transitory Provision of that legislation – have disappeared, the final amount of the Quota to be paid is obtained by deducting the compensations to Araba-Álava that due to its historical traditional has some additional powers to those of the rest of the BAC and which are exercised by the Central Government in the provinces of the rest of Spain, from the Quota Payable. These powers are of small quantitative importance, but their cost is deducted from the Quota and that amount given to Araba/Álava.

12. Net amount payable

This is the amount that is finally paid to the State, which is obtained by subtracting Álava’s compensation (11) from the liquid Quota (10).