Portal de Murcia
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The Mayor describes as "dramatic" situation of the municipalities, not only by the general economic crisis, but because "his attitude, the National Government is aggravating the situation of local government"
The President of the Regional Government and the Mayor signed a cooperation agreement amounting to almost 3 million euros to help finance current expenditure
The Mayor, Miguel Ángel Cámara, described as "dramatic" situation being experienced by local authorities "not only by the general economic crisis, but because with his attitude, the National Government has exacerbated the declining local government transfers so far we received and closing running programs that we were financed, either with the Regional Government, which maintains its support, either with the government of Rodriguez Zapatero, who has come to the aid "."
House has made these statements after the signing of singular agreement with the President of the Autonomous Community, Ramón Luis Valcárcel, to assist in sustaining the City's current expenses amounting to almost 3 million euros.
The Mayor has called on the government of Rodriguez Zapatero measures to enable municipalities to balance current spending and strengthen the capacity of local government so they are allowed to make "a situation is dramatic."
20% of current revenues of municipalities comes from the economic activity that occurs in the town-planning permission, transmissions, etc .- and since at the moment is practically zero, the municipal coffers recorded a significant gap in income, estimated about 30%.
The financial situation of local governments is even more critical if one considers that this year, also co-financing has been deleted by the General Administration of 7% of social expenditure managed by municipalities, which, in Overall, results in a significant shortfall because municipalities maintain their social programs and their daily activity.
In addition to the necessary reform of local financing, the Mayor House noted that municipalities require concrete steps, including reverse them recover the VAT that the Government's Office as revenue in VAT for the contracts of the Investment Plan Local, which would amount to 1,200 million.
It also requires measures to give flexibility to meet year-end and back about 1,000 million euros this year has reduced current transfers.
Collaboration of Regional Government
Moreover, 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 Region to help finance current expenditures of the City in the year 2009.
The grant will receive the Local Government amounts to a total of 2,922,842 euros, and is used primarily to cover the cost 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.
All investments undertaken by the City Council is then maintained as reflected in current expenditure.
The continued construction of new municipal and social, cultural, sports facilities, schools, etc .- residential growth of neighborhoods and districts, which involves providing more services to its neighbors as waste collection or street lighting, as well as improving safety, welfare programs, home care, telecare, elderly care, etc .-, among others.
Current expenditure to finance the services that make the neighborhoods and districts operate, this year will amount to 42.2 million euros.
"The current expenditure is the result of a quality service from the city of Murcia are paying all Murcia, as well as we continue providing more with less, lowering taxes, doing away with some-as the IAE, and increasing bonuses" , said the Mayor.
House also stressed that the signing of this agreement comes at a time of major economic crisis and "both from the City and from the Regional Government are making an effort to maintain the vitality of economic activity as a means to support employment and thus further increasing prosperity and quality of life. "
Source: Ayuntamiento de Murcia
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