It is a matter for each local authority to determine its own spending priorities in the context of its annual budgetary process having regard to both locally identified needs and available resources, and to manage its own day-to-day finances in a prudent and sustainable manner.
General-Purpose Grants from the Local Government Fund are my Department's contribution towards meeting the cost to local authorities of providing a reasonable level of services to the public. €651m in General-Purpose Grants has been allocated to local authorities for 2012. In addition, local authorities will retain some €77 million in pension related deductions in 2012.
Local authorities' cost and income bases vary significantly from one another and calculating an appropriate distribution of these Grants is complex. A number of factors are taken into account, including the overall funding available, the estimated cost to each authority of providing a reasonable level of services to their customers and the income each authority may generate from local sources.
I am satisfied that the General-Purpose Grant allocations provided for 2012, together with the income available from other sources, will enable local authorities to provide a reasonable level of services in their areas.
