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Cartagena signs the Declaration of Valencia, which proposes to improve the financing of the local administration (05/04/2017)

The past 16 and 17 of February were celebrated in Valencia the 'Municipalist days by a fair financing.

Proposals for reform '.

As a conclusion of these, a statement has been made that includes a series of proposals for financial reforms for the local administration that have been transferred to the Spanish Federation of Municipalities and Provinces and the State Government.

The City Council of Cartagena, through the Councilor for Finance, Contracting and Patrimony, Isabel Garcia, has adhered to this statement in the morning today.

Garcia said that "from the City of Cartagena we subscribe to all the conclusions contained in the Valencia Declaration containing proposals to change and improve the income laws of local corporations in the face of constant choking of funding by the central government, in addition to To demand the repeal of the Law of rationalization and sustainability of the public administration, better known as Law Montoro.

That is why, this morning I signed the adhesion of support of our City Council to this statement. "

DECLARATION OF VALENCIA

The 'Declaration of Valencia' defines the need for local corporations to have a stable financing system that guarantees coverage of the basic needs of citizens, so that it can not be subject to the reform of the autonomous model, but must Joint reform in the framework of a comprehensive reform of public sector financing.

It is also maintained that local financing systems should combine the presence of their own fiscal space with taxes (own and shared), taxes, public prices and, where appropriate, special contributions, allowing local governments to exercise their autonomy And fiscal co-responsibility, with a set of unconditional transfers (coming from both the central and autonomous administrations), aimed at filling the gap between the estimated expenditure needs based on the competencies assumed and the own fiscal capacity emanating Of the available tax bases.

It has been concluded that real estate property, as a tax base fixed to the territory, should continue to be the core of local taxation.

For this, an agile system of management and updating of the cadastral base and the freedom of the local governments is required to establish the tax rates that they consider convenient.

Likewise, it is proposed to review remaining local taxes in order to improve their distributive equity and the efficiency of their objectives in coordination with the taxation of the Autonomous Communities, for which it is considered necessary an in-depth reform of the Activity Tax Economic.

Likewise, other measures such as the combination of the state transfers (the so-called participation in taxes of the State-PIE) and the less developed autonomous transfers (PICAs) are used;

Reviewing the management of the PIE from the Ministry of Finance;

The right to access debt as a complementary instrument to finance their investment needs, maintaining local debt at a level of not less than 3% of GDP established by current legislation as an objective to be achieved in 2020;

That the Expenditure Regulation apply to local entities (and also to all other public administrations), only in case of violation of the principles of budgetary stability and financial sustainability, as part of the set of preventive and corrective measures that the law And that local entities that obtain a result of surplus or financing capacity with a cash surplus for positive general expenses, must be able to dispose freely of said remainder, as long as they do not exceed the limits in the levels of Delinquency and financial debt that the law establishes, without that provision computes for the purposes of compliance with the principle of budgetary stability.

Source: Ayuntamiento de Cartagena

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