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The Local Finance Committee of the FEMP reiterates the need for flexible spending ceiling to stimulate economic activity (26/02/2015)

Local authorities claim the need to modify the rigidities that limit the expenditure ceiling, thereby boosting economic activity in the municipalities would be facilitated.

The request was raised again today in the Committee on Farms and Local Financing FEMP, meeting in Madrid with the presidency of the Mayor of Murcia, Miguel Angel House.

The agreement would provide better facilities to boost economic activity and employment in the territories without such flexibility jeopardize compliance with the fiscal consolidation committed by the Government.

Apart from this issue, the meeting adopted a resolution ideas on local funding to be proposed for discussion in plenary of the Spanish Federation of Municipalities and Provinces of September.

On one hand, the opportunity to reiterate the need for a new law regulating Local Finance, with the aim of improving and increasing the funding system locally, the commission raises the desirability of promoting the necessary reforms in order to establish a framework general participation of municipalities in income of the autonomous communities.

Similarly, from the area of ​​finance part the suggestion of applying a series of proposals that allow -while there is no new funding model locally solve specific problems of municipalities, such as income tax regime occupying public domain or flexible returns of debit balances of the settlement in 2013, extending the term to 240 months.

The Commission has also decided that moves to debate in plenary of the FEMP an opportunity to call to regulate by specific regulations that resources accruing to uniprovinciales regions such as participation of the province in state revenues are considered as resources concerned to fulfill the obligations as councils and therefore for local area.

Source: Ayuntamiento de Murcia

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