A sign of the times is that the Town Hall has just approved the lowest municipal budget in a decade. With a figure of eleven million, you have to go back to the late 90’s to find an equivalent.

The Town Hall defined the 2011 budget as ‘technical, realistic and austere.’ The Mayor says that it guarantees basic services but foresees no ‘investments’ that would mortgage future municipal councils. The Councillor for Finance & Hacienda, Juan de Díos Márquez, says that all departments have seen a 50% cut.

Chapter One of the section dealing with income, covering direct taxes on vehicles, business tax and house tax, there is a 23% drop owing to the lowering of the IBI to 0.65%. Chapter Two, dealing with indirect tax on construction foresees an income of 100,000 euros, owing to the crisis in the building sector.

On the other hand, Chapter Five, dealing with the sale or renting of municipal property, there is a 52% increase, thanks to the income from chiringuitos paying the leases.
Anyway, if you would like to know exactly how municipal budgets work in Spain, and you have a good understanding of written Spanish, then visit:

http://amparosampedro.wordpress.com/aprendamos-juntos-el-funcionamiento-del-ayuntamiento/