Budget, Financial Services, Latvia, Transport
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Tuesday, 16.04.2024, 07:32
2020 fiscal space will shrink by EUR 72 mln as Rigas Satiksme is included in budget deficit
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The ministry explained that in April this year, the
so-called clarification procedure was completed on the notification of the 2018
general government budget deficit and debt, prepared by the Central Statistical
Bureau. The EU statistical office Eurostat, when getting acquainted with the
information, pointed at a separate classification of public transport service
providers.
In line with ESA methodology on fiscal data of the EU member
states, Rigas Satiksme is classified in the general government sector
because more than 50% of the company’s revenue are subsidies from the local
government and the company is restricted in its decisions because it implements
political decisions of the Riga City Council.
The formal decision on including Rigas Satiksme in
the general government sector will be made by the end of this year and will
affect the country’s fiscal indicators in 2020, including the general
government budget.
Finance Minister Janis Reirs (New Unity) told LETA
that the information on including Rigas Satiksme in the government
sector is fresh, therefore he cannot yet tell how the negative fiscal impact of
this decision on the government budget can be reduced.
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