The Barcelona City Council wants to face the serious health, social, and economic crisis caused by Covid-19 with an expansive budget of 3,231 million euros in 2021, the highest volume of mobilized resources in history. Despite the economic slowdown, the municipal government proposes an increase of 197.5 million euros to address the new needs of the post-coronavirus city: manage and respond to the social emergency and boost the reactivation of the economy with public resources, placing special emphasis on the sectors and groups most affected by the pandemic.
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For the first deputy mayor of the Barcelona City Council, Jaume Collboni, the budgets proposed by the council are "what the city needs and what many families and businesses that are having a hard time are waiting for." Collboni stated in the presentation of the budget project the obligation to address the reality imposed by the coronavirus, with many Barcelonians who have lost their jobs and have difficulties making ends meet, and many self-employed and SMEs in crisis. Despite everything, Collboni has defended that 2021 will be the year of recovery, to which the council wants to contribute with all the resources at its disposal.
Specifically, the budget project for 2021 foresees increasing spending and investment to historical maximum levels. Thus, current expenditure would reach 2,415.5 million euros, with an increase of 29.5 million euros compared to the current budgets, and investment would reach 795.4 million euros, with 202 million euros more. The construction of social housing and the transformation of public space are the main investment items outlined by the municipal government, clearly marked by the need to respond to the pandemic.
The construction of social housing and the transformation of public space are the main investment items of the budget projectRegarding revenue, next year's forecast is based on extraordinary contributions from the State ---if the central Government manages to approve its accounts---, the suspension of fiscal rules that allows the use of remnants, and the possibility of incurring debt. But it also contemplates the reduction of own revenues, with the freezing of municipal taxes and the 75% reduction in the terrace fee provided for in the fiscal ordinances.
With the presentation of the budget project, the path to approve them now begins, starting with a round of contacts and negotiations with the different municipal groups. The intention of Ada Colau's team is to reach an agreement "with a maximum majority" to move them forward, as highlighted by the Councilor for Budgets and Presidency, Jordi Martí. And, if this is not achieved, both Collboni and Martí have warned of the risks, with an extension of this year's accounts and the loss of 500 million euros of capacity for the City Council to address the crisis.