Economy
State Budget 2027: Municipalities to receive 3.46 billion euros from state tax revenue
Under the proposed 2027 State Budget, municipalities will receive 3.46 billion euros through the Financial Equilibrium Fund (FEF), representing 19.5% of state tax revenue from IRS, IRC, and VAT. Additionally, local authorities are allocated 748.7 million euros from the 5% share of resident taxpayers' IRS and 135.2 million euros from a 7.5% share of VAT revenue.
Why it matters
While this is macro-level budget planning rather than a direct tax change for you, the local IRS share (up to 5%) determines whether your municipality chooses to keep or refund that portion of your personal income tax next year.Useful?
