Portal de Murcia
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The mayor says the economic crisis and lack of stable funding to local authorities leads to an alarming situation of "financial strangulation"
House claims that the government honor its commitment and quickly address a municipal finance law
In recent years the income of Goodwill in Murcia have fallen by 50%, licenses to open 42% and 80% ICIO
At the same time, the National Government reduced its transfers to pre-2006 levels
The grave economic situation the country is in the municipalities most affected the administration, while it has highlighted the need to give local authorities an adequate and stable funding.
By the time the crisis has emerged, the municipalities have failed to receive extra resources arising from economic activity.
Thus, municipal coffers now have to manage revenues, which are those from state transfers and own tax capacity.
As a result, emerges more forcefully the structural deficit in the financing of municipalities.
This has been expressed this morning by the Mayor, Miguel Ángel Cámara, at the opening of the conference "The Local Tax to the Economic Crisis" organized by the Municipality of Murcia, the region and the University of Murcia.
They also participated in the event the Minister of Economy and Finance, Inmaculada García, and Rector, José Antonio Cobacho.
The Mayor mentioned the situation of local governments to the crisis from three perspectives: the paralysis of economic activity in the city, with a consequent drop in current revenue from city coffers, the lack of a law state funding adequately regulate local pending more than 30 years, and the strangulation of local government finances as a result of fiscal and financial decisions by the Government of Spain.
On the one hand, the paralysis of economic activity directly affects a drop in current income.
Goodwill and licenses ICIO openness are the most notorious examples.
In the case of goodwill, income earned in 2009 accounted for half of the collected four years earlier.
Thus, in 2006 was just over 16 million euros and in 2009 slightly more than 8 million.
A similar revenue shortfall has occurred in opening licenses in the same period are down 42%, from 2.2 million to 1.3 million euros.
Even more difficult has been the reduction in tax collection of buildings.
Only between 2009 and 2008, the decline has sudo 60%, a percentage that increases to 80% when reference is 2006.
This last year, revenue from this tax were EUR 31.8 million, similar to those obtained in 2007.
However, in 2008 only reached 15.7 million, while in 2009 fell further, reaching 6.2 million euros.
On the other hand, municipalities, and closer management, continue to offer services "unfit", that are not theirs, but which are demanded by citizens.
This accounts for nearly 30% of municipal spending.
They assume these responsibilities but there is no corresponding funding.
Therefore, the Mayor has once again claimed the need to articulate the participation of local authorities in government revenue and the Autonomous Communities, thus fulfilling the dictates of the Spanish Constitution concerning local funding.
Chamber recalled that the Prime Minister, in his inaugural address, pledged to address the creation of a stable funding framework for local government, why has claimed that "fulfill its commitments."
The National Government reduced its transfers
Third, the measures taken by the Government of the Nation, far from supporting local authorities, has meant a reduction in their assistance and have led to a worsening financial situation:
- Never had produced what happened in 2009: the city of Murcia was EUR 7 million less than in the previous year.
- The 76.5 million euros earmarked for state transfers in 2010 is back to pre-2006 level.
- In 2004, the state's resources accounted for 24% of current revenues of the City.
In 2010 will be 19.5%
- The VAT increase will cost the municipal treasury for under 3 million euros.
Source: Ayuntamiento de Murcia
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