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Politics cabinet decides additional support for municipalities

13:55  24 june  2020
13:55  24 june  2020 Source:   pressfrom.com

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A municipality is usually a single administrative division having corporate status and powers of self-government or jurisdiction as granted by national and regional laws to which it is subordinate.

A municipal council may finance the affairs of the municipality by charging fees for services, imposing surcharges on fees or property rates, and (when allowed by national legislation) imposing surcharges on other taxes, levies and duties. Municipal councils have duties as well as rights.

Das Bundeskabinett hat am Mittwoch weitere Teile des Corona-Konjunkturpakets auf den Weg gebracht. Die Runde im Kanzleramt billigte das Vorhaben, den Gemeinden die Hälfte der erwarteten Gewerbesteuerausfälle in diesem Jahr zu ersetzen. © HANNIBAL HANSCHKE The Federal Cabinet launched further parts of the Corona stimulus package on Wednesday. The round in the chancellery approved the plan to replace half of the expected trade tax losses this year for the municipalities.

The Federal Cabinet launched further parts of the Corona stimulus package on Wednesday. The round in the chancellery approved the plan to replace the municipalities half of the expected trade tax losses this year, as the Federal Ministry of Finance announced. The other half should take over the countries. According to the ministry, the total is around 11.8 billion euros.

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Municipalities of all sizes are bridging the digital divide. Learn how Fiber to the Home can benefit your community. With AXOS and its ability to support an everyPON strategy, IMU Fiber has a clear upgrade path to One common source of funding for municipalities is government funding programs.

Municipal rebate is a public service bodies’ rebate available for municipalities at a rate of 100% of the GST and the federal part of the HST. Municipalities in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Ontario are also entitled to a municipal rebate for a percentage of the provincial

In addition, according to the cabinet decision, the federal government is participating more than before in the so-called costs of accommodation, which are incurred for Hartz IV recipients, for example. The federal government is already paying part of this expenditure; in future it will be up to 74 percent. According to the Ministry of Finance, this means additional expenditure of around 3.4 billion euros per year.

"We all live in one of the German municipalities that are of great importance for our common life," said Federal Finance Minister Olaf Scholz (SPD) commenting on the cabinet decisions. "They are also economically important because most of the public investment is made by the municipalities." That is why the federal government wants to strengthen the municipalities "by replacing the trade tax losses and relieving the municipalities with more federal funds in terms of accommodation costs for those who depend on basic security. This is a great step forward."

In addition, the cabinet decided, according to the information, to discharge the eastern states. Instead of 40, the federal government will in future assume 50 percent of the expenditure that will arise from the supplementary pension systems of the former GDR under the Claim and Benefit Transfer Act (AAÜG). The Federal Ministry of Finance explained that this would relieve the Eastern European countries of around 340 million euros a year, "so that there is financial scope to strengthen municipal investments".

cne / bk

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