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International Internet Magazine. Baltic States news & analytics Thursday, 25.04.2024, 03:08

Riga City Council's opposition claims that budget's deficit increased to almost EUR 50 mln

BC, Riga, 27.01.2015.Print version
The current Riga City Council has run up a budget deficit of over EUR 50 million, which proves poor management practices on the part of the current Riga City Council's leaders, as Riga City Council members from All For Latvia!-For Fatherland And Freedom/LNNK told a press conference yesterday, reports LETA.

According to data presented by the councilmen, Riga budget had surplus of EUR 28.2 million back in 2010, but at the end of 2015, Riga budget is likely to have a deficit of EUR 55.6 million.

 

The Riga City Council's opposition members said it was due to all savings having been "eaten up". The heads of the Riga municipality are trying to patch the budget together by selling municipal properties, the number of which has been particularly high this year, when the municipality's Financial and Administrative Affairs Committee has been reviewing sale of one or another municipal property at almost every meeting, said Riga City Council member Andris Lacis.

 

Usakovs' poor management practices have resulted in all Riga municipal companies having problems, including waterworks company Rigas udens, housing management company Rigas namu parvaldnieks, and public transport company Rigas satiksme.

 

The opposition members criticized Riga Mayor Nils Usaskovs' (Harmony Center) statements blaming the government for Riga City Council's limited funds. "The mayor likes to speculate that he is not being given anything. Poor fellow. But this is not true," said Girts Lapins. Riga budget revenue has been steadily increasing for several years, and Riga City Council receives 55% of Latvia's gross domestic product, he said. "What should the other municipalities say in such a case, as their incomes are much lower?"

 

The opposition councilmen also said that Usakovs' explanations that the municipality was borrowing small loans were misleading – in 2003, Riga City Council's debts stood at EUR 200 million, but in 2013 the figure was 900 million.

 

Likewise, the opposition councilmen said that no money for investments was planned in the budget – the only hope is European Union funds, or borrowing more money. All budget money is currently invested in social aid, while entrepreneurship has been forgotten.

 

The opposition went on to criticize the municipality's heads for failing to implement their promises to voters – the apartment program has been halted, "park & ride" parking lots are not being developed, infrastructure development projects are not implemented.

 

"This kind of management is unacceptable, as later this burden of debts and deficit will have to be dealt with Usakovs' successors, but not himself, said opposition members.

 

They also emphasized that they would vote against the Riga budget bill during the Riga City Council's meeting today, as well as against a proposal to liquidate the Riga City Council's Audit Commission.






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