Municipalities Debt

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The borrowing of German cities and municipalities reached its highest level this year with about 15 billion since the founding of the Federal Republic. At the same time amount to the outstanding debts of local governments on more than 15 billion. According to the President of the Deutsche STDTETAG, Mayor Petra Roth (CDU), the borrowing of local households reached its highest level 2010 with about 15 billion euros since the founding of the Federal Republic. This forces many municipalities to return not only the public services, but also additional sources of revenue. According to recent press reports, the municipal taxes for the citizens will rise next year by up to 50 percent. At the same time the amount owed in the municipal sector were estimated at already in 2006 nationwide to about 13 billion euros (amtl.

Statistics as of December 31, 2006, source: modernisation). Current official figures are not available unfortunately. But experts estimate that amounted to the outstanding debts of local Governments currently to more than 15 billion euros. 15 billion Accounts receivable – 15 billion of new debt in the light of these figures is hard to convey that here is the increase in taxes in the first place at the municipal finances. The impression remains that the cities and municipalities in this situation are not striving to realize the revenue due to them. Not all debts can be implemented surely not all receivables i.H.v are possible 15 billion euros, but at least a part of it would be conceivable. Under these circumstances, the planned handle into the pockets of the citizens could not so deeply failed then next year. Are local authorities unable to collect outstanding debts? Now to imagine the municipal chamberlains they were unable to recover the amount owed, not the proper approach is guaranteed. The problem here is in the previously used revenue and expenditure system, in which outstanding debts were not visible.

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