This approach isn’t a cure-all, but it offers real help. Suma, the autonomous tax administration body under the Provincial Council of Alicante, will for the first time allocate the bulk of its surplus—2.4 million euros—to ease the fragile finances of most municipalities in the province. The provincial body approved this extraordinary measure in response to rising energy and service costs that strain local budgets.
The initiative originated with the Suma administration and received backing from the governing council and the Provincial Council itself. As José Antonio Belso outlines, the distribution forms part of an aid package for 141 municipalities in the province. Tax administration and collection are largely delegated in this setup.
A total of 2,423,000 euros was granted, with allocations to each municipal council based on the actual cost of the service provided by Suma in the 2022 financial year, following the regulatory framework of the call. Virtually all smaller municipalities saw the costs of this service fully covered.
A minimum aid of 3,000 euros guarantees that all small communities benefit meaningfully. The remaining portion of the funds was allocated according to Suma’s calculated collection rate.
The contributions were justified as a partial financing of public expenditures arising from the exercise of municipal powers related to Suma services. Belso acknowledged that in practice, these direct aids help municipalities relieve their coffers in a year when expenses rose sharply due to higher energy and other service costs.
The Suma director emphasizes that this initiative helps the Alicante Provincial Council fulfill a function assigned to provincial companies within the Public Administration framework, ensuring comprehensive and adequate public services under municipal authority across the state. The measure demonstrates a commitment to supporting local governance in challenging fiscal times.
Provincial Council President Toni Pérez described the move as the right decision. He noted that cities have faced a complex and uncertain period as inflation impacts accounting. The aim is to contribute to alleviating a problem that affects all councils as much as possible. This kind of assistance is beneficial for all involved.
As mayor of Benidorm, Toni Pérez recalls the inflation problem has persisted since 2022. He explains that costs surged at that time and, despite expectations, did not drop, remaining high and causing accounting losses.
Energy costs have climbed. People often think it is only about lighting, but higher prices affect electricity supply to schools, cultural and social infrastructure, as well as gas and propane for heating. Everything has risen steeply, he laments.
These increases also impact service costs and salaries. There is substantial labor tied to municipal contracts—cleaning, waste collection, gardeners, lifeguards, and more—that must be financed.
Alicante City Council Financial Advisor Toni Gallego echoes these concerns and highlights, for example, in the extended 2022 budget that electricity consumption was nine million euros and an allocation of fifteen million euros was needed through 2024. He notes a fifty percent rise in just two years, a trend that must be faced.
Suma uses drone to detect irregularities in tax payments
The mayor adds that costs rise with contract renewals, making it necessary to balance the accounts through determined efforts. Gallego suggests knowing what is on hand and where to focus efforts most—whether to intensify street cleaning or improve service delivery. Regardless, the treasury chief affirms, there is a solid level of service in Alicante.
With these dynamics, the councilor underscores that inflation makes budgeting very tricky, yet there is optimism that pressures will ease this year, even if costs continue to rise trendwise, just not as sharply as before.
Torrevieja Mayor Domingo Paredes points out that price reviews must be guided by Generalitat decisions whenever cost gaps appear from tender to execution. He stresses the need to investigate predictive implications, noting that energy costs could triple or quadruple. Torrevieja is addressing these increases with extraordinary loan recognitions where necessary, and there is confidence in the ability to solve such problems, though some municipalities face greater difficulties.
information system
As mentioned, most of the remaining funds from Suma are allocated to help municipalities navigate this difficult period, while a portion is reserved for planned investments by the tax office.
Director José Antonio Belso emphasizes that an important priority is renewing the information system. He notes the current system is nearly thirty years old, with rigidities from an earlier era. The plan calls for more flexibility and cloud-based integration, with a first phase this year to extend the system’s life by five to seven years. The ultimate goal is to prevent obsolescence and improve responsiveness.