The Municipal Finance Facility Special Fund would improve the economic situation in the municipalities through current spending earmarks
The Popular Party of the Municipality of Puerto Lumbreras made in the last plenary session a motion requesting the Central Government the creation of a Municipal Finance Facility Special Fund to allow greater autonomy to manage their financial situation.
The current Local Investment Fund promoted by the Central Government allocated 8,000 million euros to local councils in order to reduce the effects of the economic crisis.
However, with the Fund, the municipalities are required to perform a series of works in accordance with the requirements and framework conditions, making it impossible to improve the financial position of the municipalities.
According to the mayor, Pedro Antonio Sánchez, "the Government can not claim that the Local Investment Fund will solve all economic problems.
Since the council support the initiative of People's Party for a new special fund for these moments, which will improve the economy of all municipalities through the 1,100 million euros to recover the state with the works that run the municipalities. "
The current Investment Fund does not provide funds intended for the Provincial Councils.
In addition, the 8,000 million earmarked by the Local Investment Fund, approximately 1,100 million euros will be recovered by the State in respect of VAT generated through the procurement of works in the municipalities.
According to Sanchez, "what we want with this motion is that the amount generated from the VAT works in the municipalities is redistributed to local councils through the establishment of a Special Fund for current operations with the aim of achieving an improvement in financing of the consistory. "
On the other hand, the current Investment Fund does not contemplate the distribution of current expenditure surplus as a result of award of contracts for amounts less than originally anticipated as the highest in the tender.
Through the motion, the PP of Puerto Lumbreras urges the Government to also distributed to the respective Local Authorities excess quantities of resources from the Local Investment Fund, favoring local economies.
"The current government's financial vice president said in February that the current Investment Fund would be created 400,000 jobs, and four months later, unemployment in Spain has achieved a level never seen before, more 4 million unemployed.
This is why we presented a motion, with solutions and proposals to improve the economic situation, "added the mayor of Puerto Lumbreras, Pedro Antonio Sánchez.
Source: PP Puerto Lumbreras