The municipality Vila Real de Santo António (VRSA) will have a budget of 85,6 million euros in 2013, an amount that includes the amounts presented in the application for the Local Economy Support Plan (PAEL) and the budget amount zero base for the financial year 2013, amounting to 26,6 million euros.
«The present municipal budget represents an enormous challenge to municipal management, being the result of a profound reflection on local budget policy, which will have to be carried out in all Portuguese municipalities», revealed the Chamber of VRSA.
The municipality of Vilarreal adhered to the instrument of financial support and rescue launched by the Government for Portuguese municipalities and, therefore, set up a Budget very focused on financial containment and recovery.
«It was in this scenario that the municipal executive presented, on October 17, 2011, the Financial Containment Plan of the municipality of VRSA, which includes the 100 measures to reduce expenditure to mitigate the negative impact of the current economic situation. these are reflected in this budget'.
Thus, a Zero-Based Budget was set up, where each of the items and measures that comprise it were analyzed and approved individually, including those that normally carry over from year to year in a normal Budget.
This management measure also has the particularity of being carried out from the bottom up, that is, suggestions on how departments can become more efficient and spend less are thought out, from the outset, at the internal level of the service itself.
Moreover, joining the PAEL led to a large increase in current expenditure in 2013 (the Government's program aims to pay off short-term debt already due), which is followed by a substantial increase in capital revenues, which will also be the reflection of the support requested from the State.
It is the growth in this last item that motivates the increase in the value of the Budget from 49,8 million euros in 2012 to 85,6 million in 2013. In the opposite direction, current revenues should fall to close to half, compared to 2012 That is, from almost 34 to just under 19 million euros.
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