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Blog LOGOV

Equalizing the income of urban and rural municipalities: a comparison between Spain and Canada (Ontario)

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Over the next four years, in the EU research project LoGovwe will compare in several countries, both European and non-European, the different institutional and functional features of urban and rural municipalities. One of the aspects that we will consider is that of municipal financing. In the following, an initial, provisional and elementary comparison is drawn between the financing of Spanish municipalities and those of Canada. I thank Enid Slack of the University of Toronto for her crucial insights that have helped me understand the Canadian local financing system.

With global data, both in Spain and in the different provinces of Canada (since in this country local governments concern each province) revenues from own taxescontribute the majority of municipal revenues. The greatest differences are observed in the typologyof taxes from which the income derives and in the other complementary sources of financing (borrowing excluded). Let us start with a simple description of the sources of municipal income in each country.

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The Spanish local financing scheme and the rural-urban interplay: do state transfers produce balancing effects?

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In the framework of the European research project LoGOV, at the Institute of Local Government Law (IDL-UAM) we have begun to analyze the Spanish local financingsystem, with a focus on the possible structural differences between small or medium-sized municipalities and large or very large ones. For a first economic approach to local financing, on April 12, 2019 we invited Professor Alfonso Utrilla de la Hoz, from the Complutense University of Madrid.

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