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Declaration to request the use of remnant funds

 

Calvià, 29th April 2020

CALVIÀ PLENARY SESSION WILL AGAIN CLAIM A LAW FLEXIBILISATION TO BE ABLE TO USE REMNANT FUNDS TO FACE COVID-19

The five municipal groups agree to support an institutional Declaration

The Plenary session of the Calvià Town Hall will insist tomorrow on the need for the fiscal rules of budgetary stability, financial sustainability and spending rule to be made more flexible, so that the municipalities can use the remnant funds that they have been saving over the years and cannot be used due to the limitations of Organic Law 2/2012, of 27th April, on budgetary stability and financial sustainability.

This has been agreed in an institutional Declaration in which the State Government is urged to activate the mechanisms available to local entities in order to reinforce the social and economic reactivation policies required by the Covid-19 crisis, understanding local councils are the first public administrations to which citizens go for immediate response.

The Declaration explains that although the use of 20% of the 2019 surplus has been made available, the increase of municipalities' public spending of funds they have after years of forced savings is necessary.

Likewise, it is requested that the maximum of 300 million available to all local councils to finance economic aid and all the provision of services managed by the primary care and dependency care social services be eliminated. At the same time, it is requested, on the one hand, that no formula be negotiated so that the State Government can use local entities' funds, and on the other hand, that municipalities are allowed to exercise their autonomy to establish measures to stimulate demand and reactivate the economy with their own resources and without the limits established by Law 2/2012.