Mayors call for cutting second phase of measures against Coronavirus

The AKK says that even given the economic downturn, the second phase must be revised and cut.

“The leaders demand that the measures be revised only in line with the situation, which the situation is being assessed as positive for reviewing the second phase measures that are moving away from the danger of public health. In this regard, both the principle and the current economic situation, with the tendency to have a severe economic downturn, we appreciate that the second phase would have to be revised and cut short. Economic losses can already be huge”, the announcement says.

The AKK reports that because of the situation created with Covid-19, private municipal revenues have dropped, adding that if business continues with the second phase, it will also be damaged.

On the other hand, municipal budgets consist of government grants, central capital investments and personal revenues. The primary personal inflows of municipalities consists of property tax, construction permits, and municipal taxes. These revenues have dropped significantly, and if they continue with measures of the second phase, first they are damaged businesses which, for a day that are not working, have considerable financial losses, but even municipal budgets will be affected by the failure to operate businesses”, the report says.

The mayors estimate that with the further relief of the measures, citizens will also begin to pay off obligations to municipalities and which obligations will raise the indices of their own revenues. And for the collection of this money-- The AKK says it will invest in projects that will improve citizen life.