In 2024, municipalities will have 22.6% more resources from the local financing system, according to the Treasury
The municipalities and provinces will receive in 2024 “the record figure” of 28,557 million euros from the financing systemas reported this Monday by the fourth vice president and Minister of Finance and Public Function, Maria Jesus Montero.
The minister attended the meeting of the National Commission for Local Administration (CNAL), chaired by the Minister of Territorial Policy and Democratic Memory, Angel Victor Torres.
And at that meeting he informed the Spanish Federation of Municipalities and Provinces (FEMP) that Next year, City Councils will have 22.6% more resources from the financing system local than in 2023, including deliveries on account and settlement in 2022.
In other words, the Government has informed municipalities and provinces that in 2024 they will be allocated to these entities 5,260 million more than in 2023, which is the highest figure in history.
Fiscal deficit
At the meeting, Montero also informed the Local Entities that they will have more fiscal space in the next fiscal year, in which they will have a balanced budget.
The vice president of the Federation of Municipalities and Provinces of Spain (FEMP) attended the meeting this Monday, Equal Gem (PP)who after the meeting reiterated, in statements to the media, “a request that is common to all municipalities, with the previous president of the FEMP, a socialist, and at the current stage: We cannot handle the burdens that are transferred to us without financial tools”.
That’s why has asked “that crazy financing be addressed once and for alll. We hear that there is debate about regional financing, but local financing must be addressed in parallel to the other.”
He has also pointed out, regarding the budget stability objectives, that in 2024 “we have no obligation to have a surplus. The fiscal rules return, we know it, but cSince they are still in negotiation with the EU, we are not going to say more“, has added.
Delivery on account
All Local Entities will receive 23,773 million euros in payments on account, which represents an increase of 5.1% regarding 2023 deliveries.
For its part, The amount corresponding to the 2022 settlement reaches 4,784 million euros, compared to the 682 million corresponding to the 2021 settlementpaid in 2023, as reported by the department directed by María Jesús Montero.
Likewise, at the meeting, the fourth vice president and Minister of Finance and Public Service expressed that there is a desire to maintain the endowment to compensate for the effect of the refunds from the negative settlement of 2020, an exceptional measure that has been applied since 2022.
Montero has defended that the Government of Spain has made the largest volume of resources in its history available to Local Entities. Likewise, he has cited a series of extraordinary measures that have contributed to ensuring that Local Entities are in a position of better financial strength in these complex years. Among them he has cited support for municipalities at financial risk, the procedures for financing payments to municipal suppliers, the possibility of reinvesting the surplus in financially sustainable investments or the updating of payments on account calculated without the impact of the pandemic.