Malaga provincial authority funds municipalities with 34.5-million-euro financial injection

The Malaga provincial authority approved a new economic boost for the province's municipalities on Wednesday.

The measure involves the transfer of 34.5 million euros to the 105 municipalities. The PP and Vox parties voted in favour, while the PSOE and the sole representative from Con Málaga abstained, disagreeing with the distribution criteria.

This funding comes from the surplus from the settlement of the 2025 budget. The transfer will be unconditional, so each local governing body can use the funds for what it considers most important: investments, equipment or current expenses for the provision of services.

Of the total transfer, 17.5 million (50.72 per cent) will go to the municipalities with fewer than 20,000 inhabitants and the two autonomous local entities (Bobadilla Estación and Estación de Gaucín-El Colmenar). Allocation will depend on their number of inhabitants.

The amounts will range between 150,000 euros for villages with fewer than 500 residents and 260,000 euros for towns with between 15,000 and 20,000 inhabitants.

The remaining 17 million euros (49.28 per cent) will go to the 17 towns with more than 20,000 inhabitants, each of which will receive one million euros.

The provincial authority added that it will prioritise smaller towns, so that a municipality like Salares (with 194 people) can receive 150,000 euros (773 euros per inhabitant), while the city of Malaga (with 600,000 inhabitants) will receive 1.6 euros per person.

The distribution criteria once again pitted the PP party against the left-wing opposition parties. The PSOE and Con Málaga declared it "unfair" that large towns receive half of the funds, considering it neglect of smaller towns on behalf of the provincial authority.

President of the provincial authority Francisco Salado defended the distribution formula: "We shouldn't pit the municipalities against each other because all have needs and obligations and are under significant budgetary pressure due to the rising costs of providing services, including the larger towns, which are driving forces for the surrounding villages. It is only fair that the provincial authority provide financial assistance to all municipalities in proportion to their respective budgets."

He said that, for example, the 150,000 euros allocated to Atajate under this plan represents 12.61 per cent of its budget, while the amount allocated to Rincón de la Victoria represents 1.65 per cent of its budget or 0.27 per cent in the case of Marbella.

Salado also said that, with this plan, the provincial authority proves itself as an institution that "not only supports the development of municipalities by financing investments in infrastructure and equipment, but also contributes to economic balance, the financial sufficiency of local town halls and the maintenance of public services".

PSOE deputy Desirée Cortés denounced that this distribution gives large towns "five times more" than small municipalities. She stated that it does not contribute to territorial balance, nor does it combat inequality or depopulation. "They are institutionalising inequalities," she said.

Juan Márquez from Con Málaga accused the provincial authority of "unfair" distribution and asked that the institution focus on small municipalities.