To update the local funding model to solve the largest deficits and incorporate goals that foster desired behaviours

Local funding has not been subject to a thorough review since the transition to democracy. Although it is primarily incumbent on the Spanish government, the Government of Catalonia does benefit from adequate scope to act with its own legislation in order to solve the largest deficits in Catalan towns. Town councils are the public administration with closest ties to the territory, and it is their responsibility to meet the needs of people by applying tax respites, encouraging recruitment, promoting policies to support local commerce and adopting economic restructuring measures, always in keeping with the European mandate and the priorities of the Catalan government. The current local funding system has revealed itself to be barely equitable and has triggered obvious inequalities, such as smaller towns and tourist spots being under-resourced. Always observing the principals of local autonomy, the Government of Catalonia must review the tools with which it contributes every year to local funding, immediately applying all available remedial factors to balance the financing, including its own transfers, the Unique Plan for Works and Services of Catalonia or the creation of new transfers and subsidies linked to the fulfilment of the Sustainable Development Goals. The tax system should not only strive to raise funds, local funding must seek to foster desired behaviours, such as a tax on vehicles (IVTM) favouring less polluting vehicles, a tax on waste that favours families and companies who recycle more, and so on. The transfers made by the Government of Catalonia to town councils must be tied to the achievement of targets of local and general interest, going further than the current budgetary distribution criteria (based on population, management expenditure and county income disparities).