Financial Services, Latvia, Taxation

International Internet Magazine. Baltic States news & analytics Saturday, 06.06.2020, 00:21

Riga City Council says Riga budget will decrease EUR 116.6 mln next year due to the government's decisions

BC, Riga, 18.09.2019.Print version
Because of the government's decisions, the Riga budget will decrease by EUR 116.6 million in 2020, as the Riga City Council informed LETA.

According to representatives of the Riga City Council's Financial Department, the government report on fiscal space measures and spending on priority measures in 2020 and in 2020-2022 stipulates that EUR 30.5 min, which was originally earmarked for Riga infrastructure projects, will be allotted to the Transport Ministry.

The government plans to collect another EUR 38 mln from the share of personal income tax revenue in the Riga budget to compensate for the losses incurred by the Riga public transport company Rigas satiksme.

The Riga City Council will also lose EUR 30.2 mln, based on the Finance Ministry's decision to change the distribution of personal income tax revenue between the state and municipal budgets.

The Riga City Council will also have to invest EUR 6 mln to cover the cost of catering for schoolchildren in grades 1-4, as proposed by the Education and Science Ministry.

Furthermore, the Riga budget next year will lose EUR 11.9 mln as the maximum non-taxable monthly minimum will be raised to EUR 300.

The Riga City Council's representatives told LETA that the government's plans would halt several vitally important development projects in Riga and cause a development crisis in the city.

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