Economic bubbles generally either burst or exploit you, and experts say they have two laws: 1. Bubbles inflate longer than anyone expects. 2. Bubbles eventually burst. In ...
Economic bubbles generally either burst or exploit you, and experts say they have two laws:
1. Bubbles inflate longer than anyone expects.
2. Bubbles eventually burst.
In Tinajo, for decades, the budgetary bubble has been inflating, exploiting its residents under the tutelage of CC. This lasts too long, faithfully fulfilling the first law, not those of the Local Entities. Although, in Tinajo, the bubble did not arise from the ingenuity of audacious speculators, but rather by chance, like a fable, as when that donkey's snort on the musical instrument ended in "asinine music of the flute-playing donkey."
Something similar happened with the baton in Tinajo, and we have been hearing the same "music" ever since. So much so that, in the final report of the audit of the general account for the year 2010 of the Tinajo Town Council, it can be seen that the mayor of Tinajo is still "riding" in his particular bubble. This report illustrates the evolution of the budgetary indicators and how the mayor is being a victim of his own bubble, which does not allow him to initiate any effective, transparent management or the solution to dozens of economic and organizational problems within the Town Council.
According to the Court of Auditors, regarding income, "Values for this index greater than 90% are considered satisfactory; however, values less than 90% warn about the formulation of excessive income forecasts" (beginning of the bubble). In 2010, this index drops to 80.6% of what was budgeted. (From 2013, the mayor agreed to reduce income from the CACT fee, which implies a negative impact for new budgets). Thus, the values reflected in each resulting budgetary indicator show that the Tinajo Town Council, year after year, operates with inflated budgets.
In other words, the report reveals that the Tinajo Town Council reports that it collects rights, collects taxes, makes payments, executes expenses?, especially in the last 5 years audited, below the indices established as reasonable, and for all this, the inflation figure could be around 20%, or more, of the real budget, which allows to disguise, in addition to those undue payments or prescribed invoices, the extraordinary annual expenses of Chapter 1.
Similarly, the mayor of Tinajo avoids by all means that the second law is fulfilled: bubbles eventually burst. The Tinajo Town Council does not manage public resources according to legal indications, does not comply with agreements, nor, as has been usual, with what was agreed by the Plenary.
Tinajo is among several Canary Island town councils that do not provide data on deficit control. It does not approve the corporation's budgets in the legal time established and chains extensions of budgets habitually. Nor does it report to the Plenary or its residents on the progress of the adjustment plans, the real economic situation, or the budget during the year.
Among the repertoire of routine non-compliance with agreements (including those proposed by the government group itself and approved by its majority in the Plenary of the Corporation) is the non-application of the Agreement between the Ministry of Economy, Finance and Security and the Tinajo Town Council for the provision of the collection management service in the executive channel of the debts of said Town Council (entered into force on July 26, 2012, and updated with the consequent approval of the Plenary of Tinajo in March 2013). Then, what purpose was this agreement approved by the Plenary if it is not executed? One of the clauses of said agreement, which is not applied, stipulates: "7.1. Initiation of collection management.
1. Once the payment periods in the voluntary period have expired without the debts having been satisfied, the TOWN COUNCIL will issue the executive titles that proceed,? the identification of the taxpayers to which section 2 of article 35 of the General Tax Law refers? and those other data that the MINISTRY requires for collection management."
3. The TOWN COUNCIL will send to the MINISTRY, with a maximum monthly periodicity, the executive titles to which the object of this Agreement refers?"
On the other hand, another rescue (or "threat") is looming that could potentially burst the Tinajo bubble definitively: the one that establishes the "possible intervention of the Treasury in the process of preparing the general budgets in certain cases."
According to that pending decree, the mayors who adhere to the plan must reduce operating expenses and finance "entirely" the cost of public services that they present through fees. They will be prohibited from increasing collection, which means that they will be forced to stop providing services that they cannot afford at a prudent price. Nor will they be able to chain extensions of the budgets.
In that context, town councils with negative treasury surpluses; that have a high debt with the State (of more than 30% of their non-financial income - Tinajo has a debt close to 70%, or what is the same, 5,149,000 euros as of 12/31/2012) or have been granted loans of more than one million euros in the payment mechanism to suppliers ? Tinajo arranged 2,353,000? - (and are not returning them) may adhere to the royal decree that regulates the rescue.
Therefore, the mayor of Tinajo, given what is approaching, can lie down on the "therapeutic couch" calmly and relate his bubble symptoms, which he has plenty of, so that they prescribe what he needs. Afterwards, undeservedly, Tinajo will bear the side effects of what is prescribed, whether they maintain or burst the bubble. The latter may hurt and also heal, but, with Suso Machín as mayor, relapse is guaranteed.
