Reduced lump sum, less money for the investments of municipalities

Predsednik združenja občin Slovenije Robert Smrdelj Foto: STA

The Slovenian Ministry of Finance will present the changes in the lump sum granted to municipalities for this year and the next to the representatives from the Association of Slovenian Municipalities. The reduced lump sum has hampered the planning of necessary investments for many municipalities.

Due to an agreement with the public sector, the Association of Slovenian Municipalities has urged the government to raise the lump sum for municipalities. It is set at €530 per citizen for this year (i.e. €8 more than last year) and at €536 for next year. The Association of Slovenian Municipalities has suggested that the lump sum be raised by €5.6 for 2017 and by €9.1 for 2018. In the forthcoming year, the combined effect of the agreement for the public sector is €56 million.

The negotiations on the financing of municipalities in 2017 and 2018 began on 25 August 2016. The Slovenian Ministry of Finance presented the starting points from the government for the financing of local communities in 2017 and 2018. The Ministry of Finance would allocate a lump sum of €524 per citizen of a municipality in the forthcoming year and €530 per citizen in 2018. The municipalities would have to ensure that this sum covers all their mandatory functions. The calculations by the Ministry of Finance for 2016 show that the lump sum for the current year would have to be €652.60, but the amount paid out to the municipalities falls short by around €130.

The representatives of the municipalities said that the proposed amount was unacceptable and that it is necessary to increase it for both years since the proposed lump sum per citizen will not be enough for municipalities to perform all their functions. Because Slovenia’s economy is seeing some slight improvement, they also added that the amount of the lump sum must be corrected in order to facilitate all the functions which municipalities must provide for the benefit of their citizens.

Branka Jurhar