- Torrevieja has received €2.2 million from the final settlement of State tax revenues for 2023.
- This payment comes after months of delays and pressure from the Spanish Federation of Municipalities and Provinces (FEMP).
- The City Council highlights ongoing uncertainty over 2024 and 2026 settlements, delaying budget planning.
- FEMP demands updated legal frameworks to allow municipalities to use surplus funds for sustainable investments in upcoming years.
- Torrevieja calls for fair,predictable,and swift local government funding to ensure quality public services and investments.
Torrevieja Receives €2.2 Million from 2023 State Tax Settlements Amid Calls for Fair Local Funding
The Torrevieja City Council recently received the final payment from the 2023 State tax settlements, amounting to €2,196,983.26. This figure corresponds to the difference between the initially budgeted and effectively collected funds, arriving after months of persistent claims led by the Spanish Federation of Municipalities and Provinces (FEMP).
context: The Importance of State Tax Settlements for Torrevieja
This unexpected boost comes amid a context of ongoing demands by local entities for the Spanish government to meet its commitments concerning financing. As reflected in Torrevieja’s Economic and Financial Plan for 2023, the quarterly budget settlements continue to display fiscal stability, achieving this without drawing on the city’s treasury reserves.
- Stability Achieved: The city Council has managed to maintain a balanced budget without dipping into its reserve funds.
- Delayed Payments: While the 2023 payments were ultimately made, the 2024 final settlements are not expected until 2026, creating budgeting challenges.
Ongoing Issues with 2024 and 2026 Tax Settlements
Despite the positive news for 2023,Torrevieja faces uncertainty regarding the 2024 final tax settlements,which,under current timelines,may not be released until 2026.This delay complicates the City Council’s current budget preparations. Consequently,the Torrevieja government supports FEMP’s calls for the Ministry of Finance to not only complete the 2023 payments promptly but also expedite 2024 payments and eliminate undue delays.
Municipal Supercapacity and Calls for Legislative Reforms
In a further statement by FEMP, concerns were raised about the mandatory use of municipal surpluses to reduce debt starting in 2025, which could hinder local governments’ ability to invest in vital infrastructure. FEMP advocates for a legislative change allowing municipalities to invest their surpluses in financially sustainable projects during 2025 and 2026 without being forced to cut budgets or submit Economic-Financial Plans (PEFs) when surpluses cause temporary imbalances.
“From Torrevieja, we fully support this stance. We have been closing several quarters with budgetary stability but are still forced to approve PEFs that make no sense when the accounts are balanced and reserves have not been applied,”
said Domingo Paredes, Torrevieja’s Councilor for Economy and Finance.
Requests for updates on 2025 and 2026 Funding Allocations
The Torrevieja local government has also renewed demands for the Ministry of Finance to update the advance payments (entregas a cuenta) for 2025.Although Congress approved thes updates in July,the Ministry has yet to release the corresponding funds,negatively affecting local operations and investment capabilities.
“Torrevieja is solvent and does not need these updates to maintain stability. However, the delay causes direct financial harm to our community and threatens the operations of less financially stable municipalities,” explained Paredes.
The Urgent Need for Fair and Predictable Local Financing
there is no current communication regarding the participation of local entities in the 2026 State tax revenues,information essential for preparing upcoming budgets.
Torrevieja’s City Council once again calls for:
- Fair local financing.
- Predictable and timely payments from the central government.
- Legislative reforms to enable better use of municipal surpluses for sustainable community investments.
- Transparency and dialog between the State and local governments to prevent budget uncertainties.
These measures are crucial to ensuring that municipalities like Torrevieja can continue providing high-quality public services and investments, despite what the local administration describes as a scenario of “state abandonment.”
Quick Facts at a Glance
| Item | Details |
|---|---|
| 2023 Tax Settlement Amount | €2,196,983.26 |
| Expected Final Settlement 2024 | Not until 2026 |
| FEMP’s Legal Requests | Use of surpluses for investments & no mandatory PEFs when balanced |
| Impact on Torrevieja | Stable budget but delayed state payments threaten planning |
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