OPINION

The well of cash has dried up

The unpaid contract workers at local authorities across the country are the true reflection of the financial crisis, as they prove that the notion of a state that is able to keep making handouts to every spendthrift municipality has been shot down and is now a thing of the past. Many local authorities have reached a dead end in their economic affairs. The state no longer provides the loans that were available to them in the past in order to cover local authorities’ deficits and the private sector (which always ends up paying for the wasteful habits of public services) is struggling under the burden of additional taxes and delays in the disbursement of value-added tax rebates. In other words, the private sector is already paying for the deficits in the central government’s budget and simply cannot give anymore to ailing municipalities and other local authorities. What these bodies need to do now is explore ways to slash their spending and finally realize that taxpayers are no longer available to foot the bill each and every time a local authority makes a mess of its finances.