Aref warns of an increase in spending by large municipalities by 9%

theIndependent Authority for Financial Responsibility (ARIF) He warned on Tuesday that large councils and municipal councils plan to increase their spending by about 9% in 2023, although they estimate that these local businesses will hit a balance close to balance.

This was stated in the report on the implementation of the budget of local companies published on Tuesday, where Irv indicates that the municipalities of Madrid, Barcelona and Bilbao, the municipalities of Valladolid and Vigo, and the councils of Barcelona, Valencia, Guipuzcoa and Vizcaya will suffer from deficits resulting from their management in 2023.

Independent power indicates in your report That large domestic companies have already increased their spending by 11% in 2022, and remember that they already recommended at the beginning of July to avoid increases in spending or reductions in income that do not have permanent funding. For this group, Airef expects a surplus of nearly 3% of its income in 2023, worsening its April estimate.

In terms of spending, large companies plan to increase their primary spending by 2023, filtered from those funded with European money, by more than 4%, after recording increases of more than 7% in the past two years. The overall result is particularly influenced by the growth outlook for 2023 in upfront expenses for the large boards and similar subset, which is around 10%.

The municipalities of Las Palmas de Gran Canaria, Córdoba and Vigo, the Regional Council of Barcelona and the Provincial Council of Gipuzkoa estimate the differences in computational spending in 2023 to be more than 20%. Thus, the growth of computational spending for the group of large companies by the end of 2023 could raise the level of 2019 by about 35%, which is an annual average of about 9% in the period of suspension of fiscal rules.

City halls are in danger

In addition, this report also continues to monitor 22 municipalities in which Airef has identified, at the beginning of the cycle, significant sustainability problems in the medium term, and maintains its rating in all the entities analyzed, with the exception of Arcos de la Frontera, which is getting worse, San Fernando de Henares, which is improving, and Almonte, which leaves the analysis to promote its improvement.

The 22 city halls – with a population of over 20,000 – are: Alcorcón, Alboraya/Alboraia, Algeciras, Almonte, Aranjuez, Arcos de la Frontera, Arganda del Rey, Ayamonte, Barbate, Los Barrios, Caravaca de la Cruz, Gandía, Jaénépén, Jerez afranca, Navalcarnero, Parla, Puerto Real and San Andrés del Rabanedo, San Fernando de Henares, and Totana.

The authority warns that the situations of the municipalities of Jaén and Jerez de la Frontera are “particularly worrisome”, with the state of sustainability risks worsening year by year. Airef expects Jaén, Parla, Totana and Arcos de la Frontera to close in the red this year.

The independent body recommends that Totana, Arcos de la Frontera and Algeciras end spending increases or income cuts this year that are not in line with commitments made.

Follow all information for Economy y a job in Facebook y Twitteror on our website semanal newsletter