Budget, Financial Services, Latvia

Almers Ludviks.

After Ludviks signed a decree on budget optimization in July this year, Riga City Council's marketing department submitted its plan on cutting its spending by 7% or LVL 50,000, which, Ludviks believes, is not enough.

"Of course, marketing has a significant role in communications and development of each enterprise or organization, however, in times of economic difficulties, apart from cases, when marketing is the core activity of an enterprise, it should be seen as "additional expenses" that can be significantly reduced," Ludviks points out for LETA.

Budget of Riga City Council's marketing department for 2008 is LVL 719,584, in 2009 the department plans to spend LVL 669,580 which is 7% or by LVL 50,000 less.

"We can observe liquidation of enterprises' marketing functions in many enterprises in Latvia at the moment, not even to mention strong cuts for marketing expenses. Riga City Council should be no exception. Form the positive point of view I hope that the crisis situation will make also the municipality's marketing structures to become more professional and efficient," Ludviks said.