The Consell approves the Plan of the Financing Fund of the Local Entities of the Valencian Community



This was explained at the press conference after the plenary session of the Consell the vice president and spokesperson, Monica Oltra, who indicated that the Generalitat is committed to provide the municipalities with sufficient financial resources to respond to “the need to promote the improvement of the provision of public services, by strengthening the municipal administration, taking into account the fundamental role it plays in the provision of essential public services for citizens “.

For this reason, the Consell considers essential the implementation, by the Generalitat, of the Plan of the Financing Fund of the Local Entities.

Promote the economic balance The Financing Fund for the local entities of the Comunitat will promote the economic balance of the local entities of the Valencian Community and the internal realization of the principle of solidarity, in order to contribute to the different nuclei and entities of the population they have the adequate endowment of the necessary services, infrastructures and basic equipments of collective character and of local competition.

Likewise, the Fund is based on the principles of “objectivity, transparency, publicity and equity”, constituting “a factor of articulation, balance and territorial cohesion”. The recipients of the financing funds will be the local entities that make up the Comunitat Valenciana.

The amount is constituted by the sum of amounts budgeted for each of the sections of the Plan. Likewise, the Financing Fund is structured in three parts: the Municipal Unconditional Cooperation Fund, the participation lines in the European Funds and the lines of Financing for municipal projects.


For an adequate financing of the local entities, the role played by the Provincial Councils is essential. Therefore, it is necessary that, by the Provincial Councils of Alicante, Castellón and Valencia and by the Generalitat, the Unconditional Municipal Cooperation Fund be provided with sufficient economic appropriation.

The participation of the Provincial Councils will be carried out through their agreement of voluntary adhesion to this Fund, and those that adhere may allocate their budgetary allocation to the municipalities and smaller local entities of their province, contributing in the year 2017 the same amount as the Generalitat and under the same regime of unconditional transfers or adopting its own legal regime and rules of distribution according to the principles of objectivity and equity.

The purpose of the Unconditional Municipal Cooperation Fund is to enhance the local autonomy of the municipalities and of the smaller local entities of the Comunitat Valenciana based on the principle of subsidiarity, financed globally by the activity of these local entities. It has unconditional nature and no finalist.

In this way, municipalities and smaller local entities may allocate the resources they receive to the general development of their competences, without being linked to a specific objective or purpose.

The contributions of the Fund have the character of transfers from the Generalitat to the municipalities and smaller local entities, in order to globally finance the activities and services that correspond to them by virtue of the competences they have assumed under current legislation. Furthermore, in no case do these transfers have the nature of a subsidy.



The second part of the financing fund destined to the local entities of the Valencian Community is delimited by the lines of participation in the European Regional Development Fund through the organization of programs and lines of community financing.

This line of participation becomes an instrument of sectoral policy of the Generalitat to finance actions in matters of conservation and environmental protection carried out by the municipalities of the Valencian Community with a population of less than 20,000 inhabitants.

In this sense, actions consistent with investments for the preservation and protection of the environment and promotion of the efficiency of resources (such as actions in the sectors of water, waste, natural heritage and biodiversity) can be financed.

For their part, they constitute the third part of the Financing Fund destined to the local entities of the Valencian Community, and will be financed by the Valencian Institute of Finances and managed by the same.

Its purpose is to enable the local entities of the Region to carry out investment projects, which are developed in the sectoral areas that are set as priorities by the Generalitat.

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