Barcelona municipality posts a budget surplus of €140 million in 2013
Barcelona’s City Council has achieved a cumulative budget surplus of €23.5 million for the last few years, after posting a budget surplus of €139.3 million in 2013. In a press conference on Wednesday, the Deputy Mayor for Economy, Business and Employment, Sònia Recasens also announced that the city had eventually executed 97.55%, (€2.25 billion) of its planned expenditure. Such a figure is higher than the average execution ratio for 2009-2013. The execution ratio for investments amounts to 94% (€356 million) and is also significantly higher than in 2009-2013. In addition, debt levels represent 46.7% of the annual ordinary revenue. Furthermore, the City Council paid its providers in 29.2 days on average. Thanks to these figures, the City Council will make available 1,000 new social housing units in Barcelona.
Barcelona (ACN).- Barcelona’s city council has achieved a cumulative budget surplus of €23.5 million for the last few years, after posting a budget surplus of €139.3 million in 2013. In a press conference on Wednesday, the Deputy Mayor for Economy, Business and Employment, Sònia Recasens also announced that the city had eventually assumed 97.55%, (€2.25 billion) of its planned expenditure. Such a figure is higher than the average execution ratio for 2012-2013, which amounted to 94.9%, and even higher than the corresponding ratio for 2009-2011, set at 92.3%. If the focus is solely laid on planned investments, the execution ratio amounts to 94% (€356 million). Once again, the percentage is significantly higher than previous years, since it had only reached 86.66% for 2012-2013 and 81.35% for 2009-2011. The budget surplus achieved in 2013 will allow the City Council to increase its number of social housing, by making available 1,000 new affordable rental units in the Catalan capital.
By posting a cumulative budget surplus of €139.3 million in 2013, Barcelona City Council has continued on the positive trend it had started two years ago, recovering from the €781.8 million deficit accumulated during 2009, 2010 and 2011. At the end of 2013, the accumulated deficit was beaten, replaced by a cumulative surplus of €23.5 million.
During the press conference, the Deputy Mayor for Economy, Business and Employment, Sònia Recasens, stressed her “satisfaction” at such positive results, which had enabled to overcome the complexity of the current economic situation. “The municipal government has put the focus on creating optimal conditions for economic growth, investment attraction, entrepreneurship and job creation”, she explained.
Meanwhile, thanks to the 2013 results, gross savings will exceed 15% of the revenue (precisely 19.8% and €467 million), which will be a key asset to reduce financial costs, ensure long-term sustainability and deal with future shortfalls, stated Recasens. Besides, the City Council's debt levels have been set below 60% of ordinary revenue, at exactly 46.7%. The budget surplus will also guarantee a strong liquidity access, which will enable Barcelona to remain autonomous despite the economic difficulties and to meet all its payments in less than 30 days. At the end of December 2013 the average payment period stood at 29.2 days.