Fiscal redistribution by definition includes intergovernmental transfers, but only if they are progressive.

The formation of ERC’s claims of fiscal exploitation and their degree of credibility also depend on other factors than just the existence of a fiscal deficit with the central administration. While the ‘adequate’ level of social redistribution is a political question that does not concern us here, what can be discussed from a technical perspective is whether there are major flaws in the system that might nourish discontent with concrete forms of social redistribution. Ways of looking at this include the evaluation of: overcompensation effects, considerations of efficiency and regional economic convergence, trends in taxation and public finances, and the overall evolution of the economy. A minimal definition of fiscal redistribution entails that regions should contribute in accordance with their income but receive equal per capita spending. Hence, those with a higher than average income should be net contributors and those with a lower one net recipients. Uriel and Barberan (2007, p. 412) show that, in the period 1991–2005, Catalonia’s position was in line with this assumption. Yet, there also are some overcompensation effects,6 although their precise size is unclear. Using data for 2005, Espasa and Bosch (2010) argued that Catalonia received between 12 per cent and 14 per cent less than the Spanish average. Yet, De la Fuente (2005) calculated the same amount at 6 per cent below the average for the period 1990–97. Furthermore, this has affected other contributory regions and not exclusively Catalonia (Tortella 2016, pp. 441–443). What, instead, seems to be uncontroversial is the disproportionately low amount of infrastructural investment received by Catalonia. De la Fuente – who has otherwise provided very conservative estimates of the fiscal deficit (e.g. De la Fuente 2001) – has pointed out that the Generalitat received less investment than all other autonomous communities during the 1990s. Such spending represents a small share of the deficit claimed by ERC, but it probably had a sizable negative impact on the development of the Catalan economy in recent years.