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Councilman Finance highlights the drop in revenue linked to government transfers and economic activity

The Councillor for Economy and Finance, Salvador Gomez, today introduced the Municipal Budget for 2010, presented at the plenary session scheduled for tomorrow, Thursday.

This budget, which amounts to 26,304,725 euros, a reduction of almost 20% over last year.

In the words uttered by the head of the municipal area of finance, budgets are giving priority to social spending and reflect the will of tourism promotion activities to maintain effective and efficient.

Also, Salvador Gomez has highlighted the fall in revenue of the City in a year that revenues have decreased linked to economic activity and grants and contributions by other authorities and has not yet tackled reform local funding, "made it necessary to establish priorities, assess what is socially necessary and leave other issues for later expendable."

"This is the best budget possible, taking into account the current circumstances marked by a severe economic crisis," he pointed.

In figures, the municipal budget for 2010 amounts to EUR 26,304,725.14 in revenue and expenses divided into chapters and programs, applying for the first time the new state law on municipal budget structure.

Direct tax revenues rise 6%, resulting from the application of higher estate values in 2007, extending its effects for 10 years.

Indirect taxes, based mainly in construction activity, fell by 15%, while fees and other revenue is kept in terms similar to 2009 due to the freezing of rates and taxes.

Revenues reflect a decline in capital transfers and grants from other governments and a remedy to lower debt in 2009 in more than one hundred million pesetas, which represents the collaboration of the City of Caravaca in reducing the deficit government.

With regard to investment this year reflect only the necessary and indispensable, as major investors budgetary efforts have been made in previous years and the great works are already budgeted and running.

Source: Ayuntamiento de Caravaca de la Cruz