Inadequate financial management in municipalities

The growing expenses for the country’s municipalities indicate a lack of budgetary management, according to the Faroese Economic Council’s autumn report.

Local authorities spent DKK 1,667 million in 2011, compared with DKK 2,392 million last year. These figures do not include elderly care costs.

The Economic Council is not only critical of the municipalities; the central administration also gets its share of the blame, as the national expenses in areas other than elderly care have increased by 21 percent since 2011.

“The increasing number of senior citizens will see the public expenses continue to grow. It is therefore crucial that we put sufficient funding aside now,” the report concludes.

Translated by prosa.fo