Institutional portal - Municipality of Milan

177 million euro maneuver financed by state funds, spending savings and application of the 2020 surplus. Tasca: "The management of the municipal budget in a dynamic logic has allowed us and will allow us not to reduce the offer of services and spending on investments planned for the city"

Milan, July 16 2021 - The Council has approved the change to the 2021 Budget which is now being discussed in the City Council.  
There are 177 million euros of lower revenue for which provision was made with available sources, the result of long-term planning. The balance of the current account at 3,4 billion euros and the capital account at 4,8 billion euros is achieved thanks to the obtaining of greater revenues, part of which is represented by the 2020 administration surplus.  

“The health emergency and the economic crisis that resulted from it inevitably also weigh on the Municipality's revenue in the first half of the year - states councilor Roberto Tasca -. We find ourselves having to make up for significant revenue shortfalls because the taxes collected and the services sold by the Authority suffered inevitable contractions in the first half of the year, as we had predicted. The maneuver that we are about to carry out fits into the framework built by the administration to secure the accounts and start again with a certain optimism for the second half of 2021. The possibility of applying part of the 2020 surplus associated with the contributions received by the Government will allow us to maintain the offer of services and investment spending foreseen in the budget approved on 28 April. After having distributed 75 million euros of restricted surplus to businesses and families in the month of June, this ability to balance the accounts is an important achievement".  

The lost revenue of 177 million euros concerns some budget items relating to lower revenue for the Tourist Tax (-15 million), local public transport fares (-100 million), Single Property Fee (-19 million), fines to the highway code (-13.5 million) and other minor items.  
The rebalancing maneuver foresees revenues of 40 million coming from the Government, 100 million covered by the administration surplus quota, 20 million of temporary reductions in expenditure of the municipal departments, as well as 17 million euros of increased revenue generated independently by the entity.