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More financial space for municipalities and governorates |  news item

More financial space for municipalities and governorates | news item

news item | 09-21-2021 | 15:20

There will be more fiscal space for the municipalities. For example, the government provides an additional 1.3 billion euros for youth care before 2022. Municipalities and provinces will also have to spend more next year because central government spending will increase. All this was stated in the September circular issued by the Ministry of Interior and Kingdom Relations, which was published today.

1.3 billion euros for youth care is to make up for the shortfall and comes on top of the 300 million euros previously pledged for 2022. All children and young people deserve to grow up healthy and safe and to receive timely and appropriate assistance if needed. He is.

Municipalities and prefectures receive a significant portion of their income from the central government from the Municipal Fund and the Regional Fund. The amount of money shrinks or grows by the same percentage of government spending, this movement is called accres. In 2022, more than 1.6 billion euros will be available, of which 1.5 billion euros will be for the municipalities and 127 million euros for the provinces.

In order to relieve the financial pressure on the municipalities, the municipal fund expansion deduction was sometimes canceled in 2020 and 2021. This was also agreed for 2022, which means that the municipalities will have a total of 270 million additional euros to spend in 2022.

The tasks facing the municipalities and governorates in the future will remain as great as ever. It is up to the new Cabinet to conclude agreements with local authorities to bring administrative and financial relations more balanced with these tasks.

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