Local government in bleak condition

The bad state of local government financing in Slovakia is causing worry lines on the foreheads of local mayors and councils, with a large dose of salt rubbed into their wounds by the massive damages caused by the recent flooding.

Newly sworn in finance minister Ivan Miklos recently had talks with the Association of Towns and Villages of Slovakia (ZMOS), at which they requested EUR 141 million in emergency aid. Following the meeting, Miklos said he was ready to discuss the amount sometime soon, but he would not say exactly how much ZMOS could expect.

Miklos feels that this year’s State Budget will fall short of the EUR 1 billion in revenues projected from personal income tax. So far this year, towns and villages have received EUR 33 million in an attempt to compensate for the shortfall in personal income tax revenues, which was put down to the global economic crisis.

Many municipalities are on the brink of going bankrupt, and the new centre-right government will have its work cut out for it to deal with the situation.

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