May 15th 2018

FMRM calls for a new Local Financing Law

2018 05 14

The FMRM is calling for a Local Financing Law that represents between 4% and 6% of the CARM's non-financial income

The president of the Federation of Municipalities has requested an agreement and consensus in the Economic, Finance and Budget Committee of the Regional Assembly to reach a framework that protects local administrations

The president of the Federation of Municipalities of the Region of Murcia, Joaquín Hernández Gomariz, has today requested in the Committee on Economy, Finance and Budgets of the Regional Assembly the approval of a Law on Local Financing that supposes a participation of the municipalities between 4% and 6% in the non-financial income of the Autonomous Community. Through this request he has conveyed the consensus of all the mayors of the Region of Murcia in this historic municipalist demand.

Thus, it has been considered essential that the Regional Assembly and in a consensual manner "provide an instrument for participation in income that contributes with clear and non-discretionary criteria to reasonable, stable, sufficient and supportive financing so that the municipalities can continue to provide the necessary services to citizens."

This law would contribute to reducing or eliminating the disadvantage suffered by local administrations in terms of financing. The town councils, which are the administration closest to the citizens, assume a series of improper powers that would entail an approximate expenditure of 200 million euros, of which they only receive 30% from the CARM, a figure that would correspond to the share of taxes claimed from the Regional Government. Furthermore, as a single-province community, the Region of Murcia does not have a provincial council, but the Regional Government receives specific funding to exercise these functions, a portion that does not affect and redounds to the benefit of the local administration.

In this regard, it has been considered appropriate to resolve and clarify competences and financing at both national and regional levels, moving forward with the development of article 142 of the Constitution: “Local finances must have sufficient resources to carry out the functions that the law attributes to the respective corporations and will be funded primarily by their own taxes and by participation in the States and Autonomous Communities.”

He also stated that the FMRM understands the current complicated financial situation of the CARM and shares the moment of reflection opened by the Government of Spain on a new model of regional financing, which is why it considers that "the law that comes out of this Regional Assembly must include the principle of progressiveness in its application so that it is viable and sustainable. We need to establish the legal and juridical framework that protects us, hence the importance of the law, but we understand that the application can be gradual."

Finally, he asked that the consensus and agreement that has been demonstrated and reached between mayors in the Federation of Municipalities be an example in the Regional Assembly for the preparation of this standard and he was optimistic about its approval.  

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