Vila Real de Santo António City Council remains in a situation of financial disruption, according to the Public Finance Council (CFP).
Yesterday, April 4, the CFP released the report on Budget Execution of Local Administration, in 2017.
Vila Real de Santo António, who received money from the Municipal Support Fund (FAM) in 2016 – similarly to Portimão -, it continues to have a debt that is three times higher than the average net current revenue, in the years between 2014 and 2016.
The other municipalities in this situation of rupture are Cartaxo, Fornos de Algodres, Nordeste (Azores) and Vila Franca do Campo.
At a level below, but even so, with high indebtedness levels, it is Portimão, the other municipality in the Algarve that sought funding from the FAM.
This Algarve council is part of the group of municipalities with a ratio between 225% and 300%. This group also includes Aveiro, Fundão, Seia, Vila Nova de Poiares, Paços de Ferreira and Alfândega da Fé.
With debts of 150% to 225% above revenues, are the municipalities of Évora, Celorico da Beira, Covilhã, Alandroal, Alpiarça, Gondomar, Freixo de Espada à Cinta, Mourão, Lamego, Nazaré, Reguengos de Monsaraz, Tabuaço, Santa Comba Dão, Santarém and Tarouca.
According to the Public Finance Law, on December 31 of each year, the total debt cannot exceed 1,5 times the average net current revenue for the three previous years.
In all, there are 27 municipalities that are “above the total debt limit”, according to the CFP. The situation of financial equilibrium is only reached when debts are less than income.
Comments