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The Mayor of Totana, Isabel Maria Sanchez, will now raise a motion of urgency, the regular full month of May which will urge the Spanish Federation of Municipalities and Provinces (FEMP) and the Federation of Municipalities Murcia to push forward with the Government of Spain the implementation of a provider payment plan tailored to each local authority, depending on economic and financial status.

In the same proposal, the councilor asked the Ministry of Finance and Public Administration to conduct, in any case and in the concrete situations of these councils, percentage retention of Taxes of the State not more than 25% of total stay viable.

According to the mayor wields in his motion, of which more than 8,000 municipalities in Spain, a total of 5,137 have contracted some form of financial debt.

Not only the large urban centers accumulate large debts, but also small municipalities collect a debt very important in relation to its population.

Local governments are increasingly receiving less state funding and have been hit hardest by the crisis in the construction industry that brings lower revenues to the municipal coffers, so the administration is being hardest hit by the global financial crisis, he says.

Sanchez explains that there are many different political councils that have been calling for years for legal rules to umpire and solve the historic problems of local finance.

According to various studies of the FEMP, which local authorities pay for manage Spanish powers are not exactly his accounts for 25 percent of their spending.

The proposal comes because of the situation of those who chose Spanish municipalities eligible for provider payment plan promoted by the Government of Spain and who, for various reasons or technical reasons, has received an unfavorable ruling by the Ministry of Finance and Administration public under the Royal Decree 4/2012.

This situation has forced the Ministry competent to arbitrate other adjustment measures for the coming years to make payment of the debt that these consistories have with their suppliers.

Apparently, those municipalities that have not been resolved in a favorable adjustment plan may see reduced State taxes they receive from the State Budget according to demographics or population, whose rates can be around 50%.

Source: Ayuntamiento de Totana. Foto: archivo Totana.com