Budget, Financial Services, Latvia, Legislation

Contrary to earlier estimates suggesting that the balance of the local authority's accounts might reach EUR 8.1 million at the start of 2016, it is now expected to exceed EUR 15 million, said Ilga Tiknuse, director of the Financial Department of the Riga City Council.

Personal income tax, the local authority's main source revenues, is expected to provide EUR 503.2 million to the municipal budget in 2016. The city council also plans to receive EUR 107.4 million in property tax when the reduced tax rate is lifted next year.

Expenditure on the city's investment program is planned at EUR 50.1 million, of which EUR 46.4 million have been earmarked under the budget program "Implementation of the Investment Program", with loans making up EUR 39.9 million, municipal funding EUR 6.5 million, and allocations for road and street maintenance EUR 3.7 million.

The local authority of the Latvian capital city is also going to spend roughly EUR 24 million on renovation of schools and kindergartens next year, and EUR 12.7 million have been earmarked for buying housing. Co-funding for EU-financed projects is planned at EUR 14.07 million.

Rigas Satiksme municipal transport company will receive EUR 96.8 million in subsidies, with the central government expected to provide EUR 8.1 million and the local authority EUR 88.6 million of that amount.

The city council has worked out Riga's budget plan for a three-year period. The city council's budget committee passed the first budget framework for 2016-2018 in June 2015.

The Riga City Council finance and administration affairs committee adopted the Latvian capital city's 2016 budget on Wednesday, with opposition councilors abstaining from voting.

The city council's committees will review Riga's draft budget for 2016 on December 9. The Riga City Council plans to pass the budget at a meeting on December 15.