Budget, Financial Services, Latvia, Legislation

Photo: president.lv

During the meeting yesterday, current affairs concerning local authorities were discussed as well as various stimuli for the development of cities and municipalities.

During the talks, the association pointed out that with the Saeima elections approaching, and taking into account the current activities of political parties, the association is concerned about timely planning of state budget.

The association's representatives indicated that local government budgets do not yet increase alongside the state budget. Funding for local governments has significantly decreased the last few years, but their obligations have remained the same. Furthermore, individual decisions made by the government have created extra expenses in the local government budgets.

The association pointed out that economic efficiency should be the primary criterion for carrying out municipal projects, and not, for example, the development of degraded territories.

In conclusion both sides came to an agreement that proposals to improve the system of equalization of local governments' financial resources will be prepared.