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The Government of Navarra modifies the system of distributing money to municipalities in order to balance the territory

  • Almost all parliamentary groups (except UPN) have agreed to modify the distribution of funds to the municipalities of the foral Community of Navarra. The objective of this system is to equate the accessibility of all citizens to services and infrastructures, incorporating variables based on territorial justice and solidarity, and that part of its funding depends on the services provided by municipal entities. A total of EUR 271.7 million will be allocated to local councils next year, EUR 16.4 million more than at present. With the new system, small municipalities will receive fairer funding: In total, 189 localities of less than 1,000 inhabitants will receive €26.7 million, 15% more than today. The Government of Navarra has acknowledged that the system developed so far generates "a situation of territorial inequality".

26 October 2021 - 07:18
Last updated: 10:08

At present, Pamplona receives 432 euros per person, while municipalities between 20,001 and 50,000 inhabitants receive 280 euros per person, and those between 2,001 and 5,000 inhabitants receive 325 euros per person. The current system, according to the Government of Navarra, generates "a territorial inequality that is becoming increasingly evident over the years" and has agreed a new system to solve it, with the almost total support of the parliamentary groups.

Prior to the creation of the new system, the academics of Public Finance, Applied Economy, Geography and Spatial Planning of several universities, as well as the technicians responsible for the local administration and the eviction of the people, have developed the theoretical bases.

The new system distributes money to municipalities according to nine variables

The new system takes into account the following variables: population, population at risk of poverty, population over 65 years of age and degree of aging, the public area of the locality, the dispersion of the population's nuclei, its contribution to the territory, vehicle tax and income from the use of community members.

In populations of less than 2,500 inhabitants, the amount of their population increases in fixed amounts. In this way, the system ensures that the smallest municipality will have a minimum to meet common basic expenses, without depending on the number of inhabitants.

Depending on these variables, €196.6 million will be allocated in 2022.

In addition, EUR 44.5 million will be allocated depending on the services provided by municipal and municipal administrations. Services provided to the age range 0-3 shall be taken into account: haurreskolak, schools and libraries.

From a model centered in Pamplona, to a model that takes into account all peoples

A fund of EUR 16.2 million will be set up for territorial cohesion, from which economic resources will be obtained to the municipalities that contribute to the territorial balance and territorial development of Navarre. "Through the Charter of Capitality, the current model is focused exclusively on Pamplona and we want to make a transition towards a more global model that includes the contribution of all peoples to the territorial development of Navarra," he said.

This Territorial Cohesion Fund is based on six principles (contained in the Territorial Strategy of Navarre and Europe): accessibility, conservation, competitiveness, territorial cohesion, polycentrism and identity. About 30 localities will benefit from it: Pamplona, Tudela, Tafalla, Estella, Sangüesa, Baztan, Alsasua, Biana, San Adrián, Peralta, Puente la Reina, Irurtzun, Aoiz, Doneztebe, Bera, Leitza, Steribar, Auritz, Ochagavía, Isaba, Luer, Kunri

Change in figures

84% of municipalities, i.e. 228 municipalities, will improve their funding, while 43 municipalities will continue along the same lines and only one municipality will see its budget reduced: Pamplona/Iruña will receive EUR 86.35 million, which is 2% less than at present.

The head of the city will have a much smaller bag, but the municipalities of the Region of Pamplona will receive 14% more than at present, with a total of 49.28 million. The Government of Navarra has stated that "the EUR 1.7 million that the City of Pamplona will receive in practice will be for the Egüés Valley, which will receive EUR 1.5 million more than at present (6.2 in total)". The villages of the valley will also receive more: Aranguren will go from 2.53 to 3.28 million euros (€750,000 more); Berriozar will go from 3 to 3.6 million; Zizur Mayor, from 4.27 to 4.76 million; Noáin, from 2 to 2.4 million; Berrioplano, from 1.6 to 2 million; Huarte, from 1.74 to 2.16 million (€400,000 more); and Burlada, from 6 to 6.4 million.

Other cities will also receive increased funding: Tudela will receive EUR 13.9 million (2.4 million more); Estella 5.4 million (EUR 400,000 more); Sangüesa 1.87 million (EUR 225,000 more); Tafalla 4.19 million (EUR 600,000 more); Baztan 3.19 million (EUR 500,000 more); Altsasu 2.7 million (EUR 285,000 more) and San Adrián 2.37 million (EUR 3,000 more).

Smaller peoples will also receive better funding for more resources to enable them to cope with the eviction and consolidation of public services. For example, Azuelo goes from EUR 22,275 to EUR 34,845 (56%); Pitilla Aragón goes from EUR 13,485 to EUR 31.522 (133%); Roncal goes from EUR 109,698 to EUR 140,590 (28%)...


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