Provincial municipalities reduced their debts by 30% during the epidemic: 216 million debtors

The municipalities of the state of Alicante have managed to clear their accounts, especially in a complex context that has passed since the outbreak of the covid pandemic. The latest data released by the Ministry of Finance and Public Functions show that local governments as a whole, It has a debt of 216.8 million euros. The figure has dropped significantly two years in a row. practically a 30% higher in the year before the onset of the crisis controlling the economic system, blocking the productive fabric and undermining social stability. However, the consulates managed to move forward by reducing their debts. Some even outperform the red numbers.

Figures announced by the department he headed Maria Jesus Montero Confirm that at the end of fiscal year 2019, municipalities bordering Alicante owe a global total of 311.2 million euros; this is almost 30% more than at the end of the last full year, fiscal 2021. reviewed by the ministry.

There are two municipalities in the province that have accumulated significantly higher figures than other municipalities. These are the county seats of Marina Alta and l’Alcoià. This Denia, with a population of just over 41,000, leads the ranking. The red numbers of the council, chaired by socialist Vicent Grimalt, reached 24.4m euros at the end of 2021. alcohol, has about 60,000 residents. In this case, there is a debt of 23.9 million euros at the site, which is managed by Toni Frances (PSPV), according to the information of the ministry. The third place will be discussed between Bigastro and Monovar, whose liabilities are about 15 million euros.

The red numbers of both localities contrast with the balances of other municipalities with large populations in the province, which offer very different financing. This is the case of Alicante. While the City Council, led by Luis Barcala (PP), presented a loan of 200,000 euros at the end of 2021, Elche Carlos Gonzalez forward (PSPV) has amassed more than six million euros. Orihuela, which owes seven million; quintet Torrevieja; Elda with 54,000 Euros; and Villena with zero debt are the balances of several other county seats.

The reasons why the municipalities of Alcoy and Dénia present the worst debt data in the state are varied, according to their managers. In the example of the municipality of l’Alcoià, its Under-Secretary of the Treasury Vanessa Moltó argues that the debt is not excessively high, given that the debt is the lowest in two decades. She exceeded 40 million euros. The mayor points out that the current debt as a percentage represents 45% of the budget administered by the municipality. He assures that applying for debt is not a negative thing unless this rate rises to 75 percent, and emphasizes that the main issue is to establish a balance between the realization of projects needed in the city and income.

In the case of Dénia, the reasons for the debt dragged on by the municipality are directly related to the penalties for urban matters. Paco Roselló, the town’s Treasurer, cites the amount the municipality has to pay to deal with the convictions as 35m euros, part of which was paid out with its own funds and partly through recourse to indebtedness. . The municipality is currently carrying out its General Plan, which it does not have.

Register the Generalitat’s red numbers

Valencia Community debt broke all records at the end of the 2021 fiscal year, while at the same time municipalities reduced their indebtedness levels to the lowest figures in the last decade. Until 31 December last year, Generalitat recorded debts of 53,820 million euros, while autonomous municipalities closed the year with 1,218 million euros, 265 million less than before the pandemic. For this reason, evolution was opposed and the Community continued its upward trend in indebtedness, while the consortia followed the opposite path. However, in the first quarter of this year, Generalitat reduced its debt by 771 million, but was still the most indebted autonomous community by GDP.

The insufficient funding the Valencian Community has attracted is the cornerstone of the argument that Consell led by Ximo Puig relied on to explain the rising rate of Valencian debt. Minister of Finance, David SpainIt is already in progress that the next budgets for 2023 will reintroduce the 1300 million request item for underfunded.

The Valencia Courts commission investigating regional debt believes that the lack of financing explains 75% of the total debt.

Quick cleanup after puncturing the real estate bubble

The levels of debt offered by Alicante town halls have little to do with what they were a decade ago, when the financial crisis and the outbreak of the property crisis brought many administrations to the brink of collapse. At the end of 2011, the consulates of the province registered a debt of 928 million Euros. Adaptation plans, the spending rule limiting the use of surplus, and the measures included in the law for the sustainability of local government made it necessary to reduce the debt, which is almost one fifth today.

Source: Informacion

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