The Economy of Catalonia

7.1% of its GDP. This gain would be obtained while maintaining the
current welfare state, that is to say, taking Social Security into consideration.
Accordingly, Catalonia could maintain and even raise the level of
these services.
It should be kept in mind that this fiscal gain would have a multiplier effect
on the Catalan economy, since it could be used to increase public
expenditure or to reduce the taxation level. The increase in public
spending or the tax cuts would increase consumption and/or investment,
exerting in turn a positive effect on productive capacity and creating
new jobs.
Bibliographic references
Bosch, N. (2013) «Anàlisi econòmica del procés d’independència de
Catalunya», Fundació Josep Irla, Barcelona.
Bosch, N. and Espasa, M. (2012) «Viabilitat de Catalunya com a Estat.
Anàlisi de la hisenda pública», Fundació Catdem, Barcelona.
Departament d’Economia i Coneixement (2012) «Balança de Catalunya
amb la Unió Europea», Generalitat de Catalunya, mimeographed.
Generalitat de Catalunya (2012) «Resultats de la balança fiscal de Catalunya
amb el sector públic central 2006-2009», Barcelona.
Tax revenue and public spending 145