Portal de Murcia
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The Mayor thanked the region "comes to the rescue" of the municipalities to go through complicated situation due to economic crisis
The VAT hike decided by the Government of Argentina will cost the municipality of Murcia about 3 million euros
Current expenditure of the City Council intended to fund services that make the neighborhoods and districts work
The Autonomous Community subsidy doubles in the same year in which the Government of the Nation reduce a quarter of their contributions to municipalities
With the objective of providing better service to citizens, the Mayor of Murcia, Miguel Angel House, has signed today a cooperation agreement with the Autonomous Community of the Region to help finance the expense of further growth in larger and better services, both in quality and quantity.
The grant will receive the City of Murcia this year amounts to a total of 5,873,779 euros, twice in 2009 - and is used primarily to cover the costs of refuse collection service, maintenance of public lighting, maintenance of public roads, and maintenance of parks and gardens.
This funding will also be addressed to subsidize the price of urban transport, the service water supply, sewer service and maintenance of sports facilities.
Current expenditures are intended to fund services that make the neighborhoods and districts work.
Although the investments made by the City in recent years implies an increase in maintenance costs that are reflected in current expenditure, the 2010 budget envisaged a reduction of 6% this chapter.
This is made possible by the greater austerity applied to administrative contracts and internal operating expenses of the City, without affecting the quality of services received by citizens.
National Government: More tax, less transfer
The willingness shown by the local government to reduce spending and collaboration of the Autonomous Community to increase its subsidy in contrast to the cuts imposed by the National Government to the municipalities, which in 2010 will have a 24% less state funding.
In the case of the City of Murcia, this reduction is estimated at 17 million euros this year.
So, Mayor House thanked the President, Ramón Luis Valcárcel, the Regional Government "comes to the rescue" of municipalities to the complicated situation that cross because the economic crisis.
One difficulty caused largely by the decline in current revenues, while maintaining the same level of quality in the provision of public services.
20% of current revenues of municipalities comes from economic activity and given the current economic situation has been a significant gap.
The estimate is that the fall of Goodwill and the ICIO will be within 37%.
Compared to 2008, we see a 25% drop in revenue.
Finally, another key ingredient to aggravate the situation of the municipal treasury the VAT hike will be decided by the Government of the Nation, the financial impact for the municipality of Murcia this year 2010 will not be less than 3 million euros.
Source: Ayuntamiento de Murcia
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