1998 CU 000125 VAL end

PublicationResource Notes

El endeudamiento de la Hacienda local

Causas, características y soluciones

Social Sciences > Economics > Public Economics

There is sometimes a disparity between the size of municipalities and the size they would have to be to provide the variety of services required by them. Municipalities have an initial budget deficit, and even more so a final budget deficit. In managing revenues, there are often very high value items pending collection, and this situation is extended from one year to the next. The most significant revenues come from current transfers, which are above all from central government. There is a significant growth of short-term indebtedness, which indicates an increase in cash-flow problems. Among the reforms proposed are: a search for economies of scale in both costs and revenues when designing municipal organization; greater financial support by the regions for local councils; and better management of revenues.