Understated targeted grants for municipalities – recovery
Understated targeted grants for municipalities
Missing funds for the mandated works are covered by cities and municipalities with their own income, which is against the law.
Missing funds for the mandated works are covered by LGUs with their own income.
A practice familiar to us, shows that in most cases imposing mandated works on cities and municipalities is not connected with the transmission of the target grants, in amount sufficient to fully finance these works. At the same time the lack of appropriate funds does not exempt cities and municipalities from the obligation to fulfill the assigned works. In this case, the missing funds for the mandated works are covered by cities and municipalities with their own income, which is against the law, while the consequence of it is to increase debt or reduce investment.
Our actions in this regard consist of:
- The analysis of areas that may be subject to the process of recovering understated grants
- The analysis of the potential amounts that could be paid to the city or municipality
- Activities in the field of representation, in order to recover the outstanding amounts of target grants in 10 years.