The province of South Holland, as a financial overseer, is concerned about the cuts the cabinet wants to make to the funding for municipalities. Due to these cuts, municipalities are at risk of facing financial problems. To prevent this, a better balance must be struck between the tasks of municipalities and the resources they receive from the government for this.
The financial position of municipalities is under pressure due to a structural imbalance between tasks and resources. The province of South Holland sees that the government makes unilateral decisions that affect municipal finances, such as cuts to the municipal fund and insufficient money for implementing the Youth Act. At the same time, there is pressure to relax financial oversight from the province. The province does not see this as a sustainable solution.
Legal Duty
As a financial overseer, the province monitors and assists municipalities with their budgets and annual accounts. Financial oversight is an important way to help municipalities maintain a healthy financial administration and contributes to the quality of public governance.
An amendment to oversight does not resolve the underlying issues. The province agrees with the IPO: it cannot be the case that when the government does not deliver, the province does not fulfill its legal duty.
The province will continue to act as an independent overseer and supports municipalities with advice and knowledge sessions. At the same time, we urge the government to take responsibility and ensure a structural solution.
More Information?
Read more about this in the GS letter Financial oversight municipal finances (opens in new window).