The goal of this paper is to analyse the impact of immigration flows on the public finances of Andalusia, and thus, on the long-run sustainability of public policies in this region. We perform different simulations using the methodology of Generational Accounting. Our results, compared to those obtained by Collado et al. (2004) for Spain, suggest that the dependency ratio shows a less dramatic evolution for Andalusia. However, the financial viability of welfare policies will be more difficult given the forseeable evolution of public finances in that region. Our results also suggest that the impact of immigration will be positive, but less significant than in the rest of Spain, since the average immigrant has a low-income profile in this region. Moreover, the lower the immigrant offspring assimilation, the lower the immigration contribution will be.

Key words: inmigration, fiscal policy, generational accounting, regional economy.
JEL classification: E62, F22, H10, R10.