Thursday, January 8, 2015

Hole threatens 4.8 billion for municipalities – AD.nl

Hole threatens 4.8 billion for municipalities – AD.nl

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9-1-15 – 07:46 Source: Reuters
Researchers at the University of Groningen publish a report on the expenditure of municipalities. © ANP.

For the municipalities in the Netherlands is likely in 2018 a deficit of 4.8 billion euros. That is 284 euros per capita. Municipalities will therefore have to cut their spending in order to close this gap. Which enable researchers from the University of Groningen in a report.



The deficit in the research is not evenly distributed in the municipalities. It’s especially great for relatively central municipalities and municipalities with a weak social structure.

Large municipalities (with more than 150,000 inhabitants) and municipalities with 50,000 to 100,000 residents have to adjust their spending the most. This also applies to municipalities in Groningen, Friesland, Drenthe and South Holland.

Municipalities where the residents pay the highest housing costs, have a relatively small financial deficit.

Municipalities have This year some large jobs gained as followed decentralization. They do about 30 percent of all government spending. Yet they collect only 3.5 percent of all taxes. Therefore, they are financially very dependent on the central government.

Other price
According to Annemarie Jorritsma, president of the Association of Dutch Municipalities (VNG) municipalities should be less financially dependent the Empire. They get more and more jobs, and it also includes other financing at “Jorritsma said in an interview that the Volkskrant published today.

,, There is no other country where communities so dependent on the Empire ” says Jorritsma. The chairman said to be happy with plans of Minister Ronald Plasterk (Interior) to collect municipalities to have more taxes, but that it considers not the only possibility. ,, Should be broader look at the financing of local policy. ”

The Financial room for municipalities goes according Jorritsma analyze developments in financial-economic, demographic and administrative matters affecting the money from municipalities. The committee will also propose new financing.

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