The Basque Country (pdf, 4,3Mb) - Kultura Saila - Euskadi.net
The Basque Country (pdf, 4,3Mb) - Kultura Saila - Euskadi.net
The Basque Country (pdf, 4,3Mb) - Kultura Saila - Euskadi.net
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28<br />
Over the coming years, a large part<br />
of <strong>Basque</strong> Government investment<br />
will go toward promoting innovation<br />
as a stimulus to economic growth.<br />
Seed-bed for enterprise launched by<br />
the public development agency SPRI<br />
in the former ceramics factory of<br />
Laudio (Alava-Araba).<br />
<strong>The</strong> different types of tax are:<br />
• Direct taxes. Taxes on personal income. <strong>The</strong>se taxes are<br />
progressive (persons earning more income bear a greater tax<br />
burden) and are levied on:<br />
-Salary: Income Tax<br />
-Business profits: Corporation Tax<br />
-Wealth: property, stocks<br />
-Inheritances and donations<br />
• Indirect taxes. Taxes imposed on consumer products, sales<br />
and foreign trade.<br />
VAT and Special Taxes are co-ordinated for all European Union<br />
countries.<br />
No matter what the amount of taxes collected – regardless of the<br />
state of the <strong>Basque</strong> economy and assuming the risk of negative<br />
periods such as the 1980s – <strong>Euskadi</strong> must deliver a share or<br />
quota (Cupo) to cover general expenses which are the exclusive<br />
competence of the central government (international relations,<br />
defence, customs, general transportation, etc.) and which have<br />
not been devolved to <strong>Euskadi</strong>.<br />
Since 1981 <strong>Euskadi</strong>ʼs share is calculated at 6.24% of the annual<br />
General State Budget.<br />
After deducting the quota, the remaining income is split 70/30<br />
between the <strong>Basque</strong> Government and the Provincial Councils. In<br />
turn, the Provincial Councils earmark 50% of the amount received<br />
to finance the local councils.<br />
<strong>The</strong> <strong>Basque</strong> Government budget in 2007 was 8.740 million<br />
euros.<br />
<strong>Basque</strong> Government Budget – 2007<br />
TOTAL 8,740 million euros<br />
EXPENDITURE<br />
INCOME<br />
58%<br />
31%<br />
Navarre has a similar scheme known as the Convenio, based on<br />
a fixed amount.<br />
Local councils<br />
Education<br />
Health care<br />
Industry<br />
Housing and Environment<br />
Public Works<br />
Employment<br />
Justice<br />
Interior<br />
Culture<br />
Agriculture<br />
Taxes<br />
11% Other Miscellaneous * 7%<br />
* European Funds – 3% - Own Income – 1% - Public Debt – 3%<br />
Local or town councils are the competent bodies entrusted with<br />
overseeing matters related to each municipality.<br />
<strong>The</strong> primary duty of the local council – comprising a Mayor and<br />
ouncillors – is to ensure the delivery of local services (sanitation,<br />
transportation, fire department, etc.). To pay for these services<br />
local governments impose levies and taxes and receive funds<br />
from other more general institutions.<br />
<strong>The</strong> Association of <strong>Basque</strong> Municipalities is called EUDEL.<br />
93%