Disturbance in Barcelona, ​​now the clash rages

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By John

With the publication of the Council resolution, which took place yesterday on the institutional website, the acknowledgment of the impossibility of covering the deficit resulting from the 2022 financial statement is now official, in addition to the critical issues caused by the failure to implement the remodeled financial rebalancing plan and lastly the financial imbalances on the 2023-2025 budget forecast. All negative elements that led the Municipality to initiate the declaration of financial distress. In fact, from the data reported in the resolution which, after examination by the auditors, will be voted on by the Council, it can be deduced that already the 2022 statement, closed on 31 December, reported an administration deficit of 38 million and 781,713, with an increase, compared to the final result of 2021, of 14 million and 422,324.
The institution is currently under provisional management and activities for the 2023-2025 budget have begun. A survey of the economic-financial availability shows the failure to implement the measures of the financial rebalancing plan, also for the year 2023, although the management was oriented towards criteria of prudence, rationalization of spending, as well as safeguarding balances. In the resolution to start the procedure that will lead the Municipality to bankruptcy, it is noted that the budget is affected by the effects of the structural criticalities that the multi-year rebalancing plan had imposed. Among these causes, in terms of the lack of increase in revenue, we highlight: the poor capacity for ordinary collection of property and tax revenues; the strong difficulty in the compulsory collection activity; the operational difficulties in the management of the Municipality’s real estate assets, to be based on principles of profitability and economic convenience. In terms of the failure to reduce expenses, we note the high expense deriving from mortgages, as well as the use of state and regional liquidity advances aimed at repaying certain, liquid and collectable debts; and again the significant impact of maintenance costs and the provision of fundamental services. Furthermore, we acknowledge the chronic lack of liquidity faced by the organisation, which constantly uses revenues restricted by law and which over the years has resorted to liquidity advances. We can see the certainty and rigidity of the mandatory expenses for the three-year period 2023-2025, therefore, with the current resources, it is not possible to draw up a balanced budget forecast suitable for guaranteeing the fulfillment of the essential functions and services.