FEDERACION ESPAÑOLA DE MUNICIPIOS Y PROVINCIAS
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Set a percentage limit for the submission of plans for rebalancing of local entities
Local Authorities to submit a deficit of less than 5.53% of their noninterest income as a result of the settlement of its 2010 budget will be exempt from the requirement to submit a plan for financial and economic readjustment, according to the agreement reached today by representatives FEMP and the Central Government at the meeting of the Subcommittee on Financial Economic and Fiscal Regime National Commission for Local Administration (CNAL) that took place at the headquarters of the Ministry of Economy and Finance.
During the meeting, representatives of the FEMP has reaffirmed the strong commitment of the municipalities, provincial councils and island councils regarding the implementation of the objectives of fiscal stability, deficit reduction and sustainability of public finances sustainability
The exemption, approved on an exceptional basis to reconcile the objectives of the regulation of stability with an assessment of the economic situation is only applicable to Local Authorities with a deficit that does not exceed 0.4% of GDP set in the path fiscal consolidation by 2010.
For application, this percentage should be converted into 5.53% of non-financial income of each local entity. Thus, the local authorities to submit a deficit of less than 5.53% shall be exempt from the requirement to submit plans for financial and economic readjustment,
