Wallonie Region Funding Gap Analysis slide image

Wallonie Region Funding Gap Analysis

Focus on Region's funding gap (initial & with COVID-19 effect) Wallonie service public SPW Funding gap evolution over 2018-2020 Funding Needs 2020 (initial) In EUR million 2018 (1) 2019 2020 (EUR million) (2) (3) Revenues (excl. proceeds Funding gap (*) 8,063.93 11,313.44 12,836.89 from borrowings) Expenditures (incl. 9,447.63 13,589.39 15,628.72 Amortization of matured debts Funding needs -2,050.03 -741.80 Funding gap (1) Amortization of matured debts -2,791.83 Initial COVID-19 expenditures amortizations) Funding needs -1,383.70 -2,275.95 -2,791.83 (1) 2018 figures are confirmed (executed) (2) 2019 figures are still provisional (to be confirmed) (3) 2020 figures are budgetary-based, with significant buffer in expenditures and before zero-based budgeting exercise (definition slide 12) - Budget buffer 2020 (initial) Pre-financing in 2019 Up-to-date financing in 2020 Residual funding needs 281.00 Funding needs Budget buffer 2020 (initial) Funding Needs 2020 (incl. COVID-19) (EUR million) -2,050.03 -741.80 -1 500.00 -4,291.83 281.00 150.15 Pre-financing in 2019 150.15 1 304.00 Up-to-date financing in 2020 4 014.00 -1 056.68 (*) including EUR millions 350.00 for Transition Investment Plan Residual funding needs (1) EUR 350 million for Transition Investment Plan allocated to cover initial COVID-19 expenditures (156.32) □ Significant increase of expenditures in 2019 versus 2018, due to the impact of the 6th reform (transfer of competences in health sector and family allowances), preventing a planned return to the equilibrium for the ESA 2010 budget balance. ☐ Significant reduction of forecast revenues planned for 2020 due to non-compensated impact of the tax shift measures implemented at Federal State level. COVID-19 pandemic and unprecedented related economic crisis will inevitably affect funding needs of Région wallonne in 2020. When looking to COVID-19 related expenditures and impact on 2020 regional revenues, additional funding needs are currently estimated to EUR 1,500 million (taking into account Belgian GDP decrease around 8% - latest numbers available from National Bank of Belgium), of which EUR 700 million are already Social Bond qualified eligible expenditures (cf. pages 25 to 28) . 17
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