Local authorities earmark more money for care and housing and cut back on income support

Municipal costs are estimated to rise in 2007 by 3.3 percent to 44.7 billion euro and revenues by 6.0 percent to 45.3 billion euro, leaving a budget surplus of 0.6 billion euro.

The increase in costs is mainly due to the fact that since 1 January 2007 municipal authorities are responsible for household care. The ensuing costs are estimated at 1.3 billion euro. Revenues rise because municipal levies are estimated to increase by 0.3 billion euro and because development of building lots is becoming more and more profitable.

Local authorities expect to cut back 0.4 billion euro on income support relative to 2006. This is due to a reduction in the number of income support recipients. In particular large municipalities anticipate a decline in the number of income support recipients.

Estimated municipal costs per policy area, 2006 and 2007