Budget, Financial Services, Latvia, Legislation

The 2018 draft municipal budget for Riga was presented at the city council yesterday.

The Riga City Council nevertheless did not yet reach a decision on next year’s budget, and lawmakers will continue revising the budget proposals today, LETA learned from the Riga City Council.

The Riga City Council meeting on Wednesday lasted for eight hours with short breaks in between.

Lawmakers were actively debating subsidies to Rigas Satiksme municipal transport company, Riga.lv internet portal and other issues.

Total revenue to the Riga city budget next year is planned at EUR 906.62 million, including EUR 702.66 million in tax revenues and EUR 145.10 million in transfers from the state budget.

Total expenditure in 2018 is planned at EUR 954.90 million, including EUR 784.69 million of maintenance expenditure such as social benefits and salaries to municipal employees while capital expenditure is planned at EUR 170 million.

The budget deficit is planned at EUR 48.28 million next year.

The Riga mayor said that, just like in previous years, the budget deficit estimate was too conservative and the city most probably would have a zero budget deficit or close to it in 2018.

He stressed that Riga's liabilities would keep decreasing also in 2018 and were planned at EUR 888.3 million compared to EUR 891 million in 2017.

The largest allocations in the city budget are intended for street repairs, renovation of schools and social benefits.