Portal de Murcia
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The Councilor for Citizen Security and Economic Management, Eduardo Martínez-Oliva, has presented a motion to the Plenary held today to demand the Government of Spain to make the payment of the 753.3 million euros owed to local entities for VAT .
The text has been approved unanimously
As Martínez-Oliva has indicated, this behavior is "absolutely contrary to the law and unfair to local entities."
The effect of this measure for the City of Murcia from the economic point of view is 348,935.89 euros for the month of 2017 stopped entering and 1,751,604.08 euros of the Supplementary Financing Fund which makes a total of 2,100 .539.92 euros
The councilor explained that the central government "has unreasonably delayed the payment to local entities of the VAT corresponding to the month of December 2017".
"The Government of Spain affirmed that a functioning government could not update the regional and local financing by scrutinizing a non-existent report by the State Advocacy. Later, in October 2019, it announced that it would proceed to make payments on account deliveries, after having mysteriously disappeared, and electoralist, the supposed legal impediments wielded months before. "
"Despite this payment, the Government still does not comply with its legal obligations and continues to owe both autonomous communities and local entities the VAT of December 2017," said the mayor.
Martínez-Oliva has continued explaining that "at the Fiscal and Financial Policy Council held on February 7, Minister Montero announced the government's refusal to pay the 2,500 million euros due in December 2017 of VAT due to the Autonomous Communities, that is, to all Spaniards. "
In exchange for not paying their debts, the Government proposed to the autonomous communities to compensate the default with an extra regional liquidation fund (FLA) at zero percent interest and soften the deficit target.
"Proposals totally contrary to what a rigorous and serious government should propose because they assume that citizens must pay again for what they already paid in December 2017 and mortgage future generations generating more public debt," denounced the councilor
The Minister of Finance made it clear that she cannot return the 2017 VAT monthly payment because that decision should have been included in the 2019 budgets, which were not approved.
"A default that in the case of Local Entities, in addition to constituting a breach of a legal obligation that puts at risk that they can continue to provide their neighbors with the public services entrusted to them (maintenance of urban infrastructure, housing, security, social services , etc.), has led to the 2017 liquidation of the Participation of the municipalities in the State Taxes being negative for the whole of the local administration which implies the obligation to reintegrate high amounts to the State, "Martínez concluded -Olive.
Source: PP Murcia
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