Spain's Public Sector: Structure, Classification and Management Models

TMA 1

1.2. Spanish Public Sector Configuration: Scope and Organization of Management

The delimitation of the various economic entities that make up the public sector is a necessary and preliminary step for any analysis of the public accounting problem. We can divide these entities according to the criterion of territoriality (state, autonomous and local) and according to the legal regime applicable to them (public administration, public business sector, and public foundations).

The classification of the public sector is important because it establishes differences in the way these entities manage their resources: the accounting regime to be applied, the budgetary regime, the legal regime, the financing system, and the control models, among others.

State Public Sector

a) General administration of the State.

b) Autonomous agencies dependent on the General State Administration.

c) Public business entities and other public bodies linked or dependent on the General State Administration.

d) Entities managing common services and mutual societies for work accidents and occupational diseases, and for social security.

e) State-owned commercial companies, as defined in the legislation on public administration assets.

f) State public sector foundations, as defined in the relevant legislation.

g) Other State public law entities mentioned above, other than those in sections c) (public law entities with a differentiated legal regime).

h) Consortia endowed with their own legal personality in which the State holds a majority stake or effective control.

i) Bodies with differentiated functions that, without having their own legal personality, are integrated into the State administration.

State Administrative Public Sector:

• The subjects mentioned in sections a), b) and i).
• The entities mentioned in section g) that meet either of the following two characteristics:
  • Their main activity is non-profit.
  • They are not mainly financed through commercial revenues.

State Business Public Sector

This sector includes:

• The public business entities.
• The State-owned commercial companies.
• The entities mentioned in section g) that are not included in the State administrative public sector.

State Foundation Public Sector

This sector is made up of the foundations of the State public sector.

Autonomous Community Public Sector (17 Autonomous Communities)

a) The general administration of each autonomous community, organized through its regional ministries (consejerías), including central and peripheral services.

b) Autonomous agencies.

c) Public business entities.

d) Entities managing common services.

e) Commercial companies.

f) Foundations.

g) Other public law entities.

h) Consortia.

Local Public Sector (Municipalities and Supramunicipal Entities)

a) The general or central administration of the local authority, including central and peripheral services.

b) Autonomous agencies.

c) Public business entities.

d) Commercial companies.

e) Consortia.

f) Foundations.

Forms of Management of Public Services

Public services can be managed in different ways:

• Direct management: carried out by the entity itself, or through the creation of autonomous bodies or commercial companies whose capital is wholly owned by the public entity.
• Indirect management: includes several modalities whereby the service is entrusted, in whole or in part, to the private sector, such as a concession, concert, interested management, or a company with partially public commercial capital, among others.