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The ' spending rule ' is unfair

There is no reason to prevent the constrained councils from reinvesting their surpluses for the benefit of citizens

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The ' spending rule ' is unfair

The Spanish town councils suffer from a chronic evil, which is insufficient funding. In addition, y are public bodies that have suffered more intensely programs of adjustment to extremes. A proposal of law of can aims to flexibilize known as "rule of expenditure", established in law of budgetary stability, which rigorously limits budget of municipal expenditure: one cannot surpass a limit (1.7% of increase in 2017), calculated by Government in terms of GDP growth, even if y have surpluses. The proposal, which will be debated in Congress from March and with support of PSOE and or opposition groups, wants to loosen a standard whose current application seems rigid and inappropriate.

Previous Editorials

Madrid accounts (08/11/2017)

Expenditure Debate (06/07/2017)

The "spending rule" is unfair and must be changed for a number of reasons. The city councils have met austerity demands more effectively than or administrations (for example, better than state). They also have to cope with social expenditures before citizen and renovate spent infrastructures, usually of average or low cost. The mere fact that a universal expenditure restriction is imposed, both for municipalities with good financial health and those who have mismanaged ir resources and that a reasonable reversal of surpluses is prevented in those who need it makes standard Unfair. The councils compliers point, not without logic, a perversion of norm: resources that manage to save finance deficits of poorly managed municipalities.

The government, pigeonholed into austerity which, because of its inflexible application, is discriminatory, must reverse its frontal rejection and negotiate a new rule that is more nuanced and useful for citizens. The commitment to deficit requires austerity and not financial punishment for members who deserve recognition for ir good management.

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