The Price of the State

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Municipality Expenditures

EUR mil. Per capita Per working person Annual change
Labour Costs (including contributions) 1 285,5 238 549 -1,8%
Goods and Services 920,9 170 393 -10,3%
Transfers 389,8 72 166 4,8%
Capital Expenditures and Transfers 802,1 148 342 20,2%
Interest Payments 28,0 5 12 -5,3%
Financial Operations, Debt Repayment 275,0 51 117 23,7%
Total Expenditures of Municipalities 3 701,4 685 1 580 2,0%

Table description

Municipalities represent the first and closest contact of citizen with the state. Their competence (abilities to decide and manage) and roles significantly expanded in the years 2002-2004 during the decentralization of state power. Their spending is dominated by the cost of wages, due to the high number of representatives (more than 20,000 representatives at nearly 3,000 municipalities).