Budget, Financial Services, Latvia, Legislation, Transport

Saeima decided yesterday, December 17, to reject the proposal to allocate EUR 15 million for covering a 50% discount in public transport for residents who have not declared Riga as their city of residence.

"I would like to thank former ministers of the environmental protection and regional development, Einars Cilinskis (VL-TB/LNNK) and Romans Naudins (VL-TB/LNNK), as well as the current minister Kaspars Gerhards (VL-TB/LNNK), for their support and understanding. They all truly tried to find a rational solution to this problem," Usakovs stressed.

Meanwhile, yesterday's Saeima vote against state subsidies for non-residents of Riga can be perceived "only as a spit in the face for the residents of Riga, a mockery," Usakovs said.

Riga municipal public transport company Rigas satiksme traditionally receives subsidies from the Riga budget. Furthermore, the municipality's budget consists of tax payments by residents who have declared Riga as their city of residence. The 50% discount for public transport is covered for all passengers – both those who are residents of Riga and those who are not (about 25% of all passengers transported by Rigas satiksme). This costs about EUR 15 million a year for the Riga City Council, the municipality said.

Tomorrow, December 19, Usakovs will meet with Gerhards to discuss the issue.