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Provisional redistribution of municipal fund mainly affects the poorest municipalities | NOW

The proposed new redistribution of the municipal fund, the main source of income for municipalities from The Hague, mainly affects the poorest municipalities in the Netherlands. That concludes platform for investigative journalism Pointer Saturday after an inventory. The new redistribution is not yet final, a new cabinet will eventually have to give the green light for the concept allocation.

The inventory shows that among the fifty municipalities with the poorest inhabitants, 34 municipalities are in decline. These communities would receive less money from the municipal fund in the proposed plans.

The Council for Public Administration (ROB), an advisory body to the government, is critical of the proposed plans. According to an interim opinion, owned by Pointer, the ROB would question the substantiation of the new redistribution.

The advisory body is also critical of the distribution itself: the municipalities in financial difficulties are actually deteriorating further. These municipalities can mainly be found in Friesland, Limburg and Groningen. These are often areas that levy relatively high property tax (property tax), in order to compensate for rising healthcare costs as a result of decentralization, municipal finance expert Ferry Knaack explains to Pointer. Due to the higher property tax, however, the government thinks that these municipalities need less money from the municipal fund, which means that they are affected twice.

The four largest cities will also suffer in the new redistribution, while it is precisely the medium-sized cities that will benefit. The latter category will receive more money to tackle social problems.

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Source site www.nu.nl

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