VRSA has been given the third and final instalment of the Municipal Support Fund, amounting to 2.5 million euros, and this money will be used to pay off debts incurred by the council.
The latest Municipal Support Fund (FAM) report for the first, second and third quarters of 2018 confirm that “corrective measures have been taken in light of the municipalities budgetary performance and debt developments since 2017”.
This means that for the first time in several years that the municipality of VRSA will not accumulate any debt thanks to the council reducing the supply of goods and services, reorganising of the city structure and rationalising of personnel expenses.
"In just one year, the municipality of Vila Real de Santo António reduced its spending by around five million euros. These results are clearly positive and show that the results of the implementation of the Budget Equilibrium Programme, whose mission is to recover municipal accounts, is producing very satisfactory results ", said Conceição Cabrita, mayor of VRSA.
The mayor added: "The receipt of the third tranche of the FAM is, moreover, a vote of confidence regarding the effort that has been developed by this executive to balance finances unequivocally,"
According to the Municipal Support Fund, and taking into account the analysis of the budget execution until the third quarter of 2018, the total expenditure of the municipality registered a decrease of 18.1% compared to the forecasts, "mirroring a fiscal consolidation effort" and 'positive developments in budget balances'.
"These are just the first numbers that prove that this executive's fiscal rigor is providing results and consolidates a new form of governance that has been able to find new solutions to renegotiate the debt contracted and inherited," said Conceição Cabrita.
"We are sure that this is the only possible way, and only with this set of strict measures is it possible to clean the house, recovering the credibility of our local authority and preparing for the increasingly demanding challenges of the future," concluded the mayor.