ZMOS: Use of Resources from Reserve Fund Will Help Us Overcome Difficult Period

Bratislava, November 22 (TASR) - The Slovak Towns and Villages Association (ZMOS) welcomes the proposal to amend the law to allow the use of the reserve fund to pay for current budget expenditure until the end of 2025, ZMOS reported on Friday, adding that this will give local authorities the flexibility to cope with a financially challenging period. "It isn't a systemic solution, but in the short term this measure can help municipalities cope with the coming year, which will be extremely challenging. ZMOS is aware that some municipalities have already spent their reserve funds and therefore this measure won't be a solution for them. For others, however, it provides some space to bridge the current situation," said ZMOS chairman Jozef Bozik. The proposed change will allow municipalities to use reserve funds to cover current expenses such as maintenance of public facilities or school operations. The measure will also give them the opportunity to mitigate revenue shortfalls from shared taxes by temporarily covering these shortfalls from the reserve fund, without the need to introduce severe austerity measures. ZMOS also warned that the use of the reserve fund for current expenditures may mean a reduction of funds for investments. Less funding will be available for important projects such as upgrading local infrastructure, building new facilities or improving public services. am/mcs