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Accounts for 2023 were approved in the Municipal Assembly, with the PS voting against and the CDU abstaining. Executive assumes that the municipality’s financial situation is “complex”
Photographer: DR
The Nelas Chamber closed its 2023 accounts with a negative net result of around 800 thousand euros. The document was approved at the last Municipal Assembly, which took place last Friday (26 April).
The report was approved by a majority, with 14 votes in favor of the PSD-CDS coalition and the board presidents. The PS voted against (six votes) and there was also one abstention from the CDU. According to the executive chaired by social democrat Joaquim Amaral, last year “brought enormous challenges” in the management of the Chamber.
In addition to the “committed, but unpaid” expenditure amounting to more than 3 million euros, the accounts were worsened by the fact that amounts in excess of 1.3 million euros were determined “which were not yet invoiced or were inappropriate, a situation which will further worsen municipal expenses and debt in the coming years”, explains the executive.
In a statement, it also states that the management of the “complex” financial situation was further exacerbated by “the imbalance generated by Government decisions in 2023”, highlighting that the increase in revenue was insufficient “to face the increase in costs associated with the fair increase civil service salaries, particularly with regard to the remuneration of employees resulting from the transfer of skills in the area of Education”.
The municipal executive also points to the increase in prices due to inflation and the rise in interest charges on bank financing, without forgetting “the exponential cost of energy, electricity, raw materials, maintenance of buildings and automobile fleet and the closing of applications” for Portugal 2020 funds.
The Chamber highlights, for example, the increase in personnel expenses of around 900 thousand euros, an increase that is justified “with the negative difference in the value of the transfer of remuneration funds arising from the new municipal powers” and as a result of salary updates , consolidating mobility and hiring more employees to support pre-school and first cycle education.
Despite the negative result, this “did not have significant relevance in the economic/financial ratios, which essentially maintained the positive trajectory and improvement of the municipality’s financial situation, increasing solvency, liquidity and financial autonomy”, says the executive.
“During the year 2023 there was a decrease in the acquisition of goods and services (250 thousand euros), long-term debt (800 thousand euros) and liabilities (2.7 million euros. The positive record should also be highlighted with regard to the average payment period to suppliers, 59 days, falling within the required legal limit”, he adds.
The executive, who expects greater stability in rising prices and interest rates and for the Government to “correct the imbalance” in transfers from the State Budget, also says that he is already making efforts to guarantee a financial recovery in the “short term ” of the municipality and that it will not fail to “fulfil its legal obligations and continue to support the parishes, entities and communities in the municipality of Nelas, as well as promoting the implementation of structuring investments for the municipality”.
