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Authorities rely on government funds

LOCAL authorities have a range of funding sources, but are heavily reliant on central government.

In 2010, the last year for which figures are available, they had revenues of €4.6bn. The main source of funding was commercial rates, which took in €1.25bn, followed by €1.1bn made up of charging for goods and services – for example, planning application fees.

A similar amount came from grants, about €200m from the second-home tax and €700m from central government. This comes from the Local Government Fund, made up of receipts of motor tax, and from 2012 also included the projected income from the household tax. However, low collection rates mean there is a shortfall in the fund.

Irish Independent