The president of the Popular Party's Council of Mayors in Malaga warned this Sunday about how the lack of new General State Budgets harms municipalities. This situation prevents the updating of amounts that local corporations receive through participation in state taxes, known as PIE.
This circumstance leads to city councils receiving fewer funds than they should during the first months of the year, creating an immediate treasury problem. Although these amounts are usually regularized later, the popular leader emphasizes that the discrepancy already impacts municipal economic planning.
“"It is not true that nothing happens by not having budgets. Of course, it does. What happens is that city councils receive less money than they are entitled to at a key moment of the year and their treasury is compromised."
The situation affects smaller municipalities more intensely, as they have a more limited margin to absorb delays or deviations in their ordinary income. The PP representative criticized the stance of the former Minister of Finance, whom she accuses of having downplayed the effects of the absence of new state accounts.
The Popular Party has lamented that this essential issue for local financing has remained unresolved, demonstrating a supposed lack of sensitivity from the Government towards municipalism. It has been insisted that city councils are the administration closest to citizens and support a large part of local public services.
Local financing, according to the political party, cannot depend on improvisation or late regularizations, as city councils require foresight, stability, and certainty to plan their activities and guarantee the provision of services. Therefore, the Ministry of Finance has been urged to show “responsibility” and “institutional respect” towards local entities.
