Rich municipalities’ revenues to support the provinces’ budgets

The government decided, for the first time to give license to the rich municipalities to grant subsidies to the benefit of the Wilaya’s budget, as part of the domestic financial solidarity, which aimed at finding sources of funding the poor municipalities, which usually reflected their poverty on the development and social status of its inhabitants, in light of the confirmation of official reports that approximately 980 municipalities of the total 1541 municipalities suffer from poverty and lack of resources, while 36 municipalities are classified among the very rich municipalities.

According to the government’s decision, which will be in effect by the beginning of the next fiscal year, the rich municipalities can grant, under a deliberation, subsidies for the Wilaya’s budget to which they belong, and which suffers a shortage of revenues.

According to official reports, some municipalities noticed annually a fiscal surplus in revenues that are transferred from year to year, as this surplus will enable, under the new license, which was recently approved by the government, and was included in the supplementary finance bill via a clear article that will be applied in the context of local solidarity through subsidies that will transferred to the province budget.

In this context, the Wilaya, as it is a decentralized regional group will provide research and mobilization of the necessary financial resources to ensure the continuation of local solidarity process by funding local development and assist municipalities, in accordance with the provisions of Article 3 of the Law on the Wilaya, that aimed to achieve the domestic financial solidarity between the municipalities of each Wilaya, and to ensure the regional balance.