Until now, the budget revenue of the capital was planned in the amount of 935,266,630 euros, however, by amending the binding regulations on the municipal budget, the revenue forecast has been reduced by 3,682,084 euros, thus the revenue will reach 931,584,546 euros.
Revenues from real estate tax have decreased by 3,864,109 euros. The City Council explained that it is planned to reduce tax revenues from real estate by 3.5% of the annual plan in accordance with the applications submitted by taxpayers for extension of the payment term.
But the decrease in non-tax revenues is 1,876,239 euros, including 420,000 euros for the municipal fee for trade in public places, and 456,239 euros for the fee for the maintenance and development of municipal infrastructure. Revenues from privatization and expropriation processes have also been reduced by EUR 1,000,000 in line with actual performance.
The decrease in the revenue of budgetary institutions amounts to EUR 360,958, but there is an increase in the state budget transfers by EUR 2,419,222 for the implementation of projects and measures co-financed by the European Union. Of these, 1,680,000 euros are planned for the renovation of the Daile Theater Square, and 739,222 euros for the renovation of the Riflemen’s Square.
The municipal expenditure plan was increased by 3,627,069 euros, reaching 1,044,488,342 euros.
At the same time, a total of an additional 33.6 million euros has been allocated to the economic heating programs announced by the state, LETA informed the council.
Using the measures implemented by the state to support the economy, which envisage an increase in the loan limit for the implementation of municipal investment projects, it is planned to implement 69 municipal building energy efficiency projects in the amount of 14 million euros, of which 10.5 million euros will be borrowed.
This year, the Traffic Department plans to start and in 2021 complete the construction of the Imanta-Daugavgrīva and Centrs-Ziepniekkalns bicycle lanes, as well as the construction of car parks within the red lines of the streets. In its turn, the Riga Municipal Police plans to develop the city’s video surveillance systems, and the Welfare Department will develop anti-fall system technologies in social care centers and clients’ homes.
1.7 million investments are also planned in the renovation of the operating units of Riga 1st Hospital.
In order to eliminate the consequences of the spread of the state-of-the-art emergency situation Covid-19, the local government renewed the council’s reserve fund in the amount of 13 million euros by reviewing the budget expenditures planned by the executive bodies.
When approving the budget, the planned amount of municipal loans in 2020 was by 13.5 million euros less than the planned loan repayments, but the amount of debt liabilities to be covered by the local government in the current year was 11.4% of revenue, meeting the 20% criterion. Thus, participation in the measures implemented by the state to support the economy does not endanger the stability of the city budget, stressed the city council.
“Riga municipality actively participates in the state-announced economic heating programs and plans investments in culture, education and traffic infrastructure programs this year. In turn, the implementation of municipal-funded investment projects and EU co-financed projects will help mitigate the Covid-19 crisis by increasing economic activity and employment.” considers
Head of the Provisional Administration of Riga Municipality Edvīns Balševics.
–
