Municipalities barely invested 8% of their millionaire surplus last year
The late authorization from the Tax Office and the rigid fiscal straitjacket of the town councils complicate the execution. Most of the amounts were allocated to housing.
The municipalities accumulate a millionaire piggy bank that they hardly use. At a time of growing spending needs, with access to the real estate market as the main urgency, last year they only invested 268 million of the more than 3,200 that they could mobilize, according to the latest data from the Ministry of Finance. The novelty is that most of the surplus has been allocated to housing-related projects, which has become the great priority of many administrations.
The low execution, on the other hand, is chronic, and responds to both conjunctural and structural factors. On the one hand, the ministry did not authorize the use of the accumulated balance until the end of the year; on the other, the strict budgetary framework to which local entities are subject leaves them little room to use their cash surplus.
Translated by urgent.news from El Pais Economia's report; automated translation may contain errors. Machine-written — it may contain errors, so check the original before relying on it.
