On Wednesday, the 22nd of March, Riga City Council amended the municipality’s budget, increasing expenditures by nearly EUR 150 million.
Riga’s total revenue is set to increase by EUR 13.8 million, reaching EUR 1.19 billion, whereas budget expenditures will increase by EUR 148.6 million, reaching EUR 1.4 billion.
This means expenditures will exceed revenue by nearly EUR 212 million. The municipal administration plans to cover this amount from the budget balance left from the start of the year. The city council also plans to use loans.
On the 25th of January Riga City Council approved the municipal budget. The city council’s planned revenue there was EUR 140 million higher when compared with 2022. Deputies were told that it was a temporary or technical budget.
A total of 44 proposals were submitted for the Riga City Council budget project, according to information published on the city council’s internet site. All budget-related proposals were rejected by the city council’s deputies.
During the meeting one proposal was withdrawn by its initiator.
Most of the proposals were associated with the social sector – various benefits for teachers, police officers, seniors and low-income residents. Proposals were also received to perform maintenance of various sports fields and other sports locations, as well as new public transport stops and pedestrian crossings. Riga City Council was also asked to provide teachers a 100% discount for public transport services. Several of the submitted proposals that were rejected were already included in budget amendments.
Among the proposals was also the suggestion to support the creation of a new programme to attract high added value investments to Riga by providing it with annual funding of at least EUR 10 million. This funding would be used on creation, maintenance and adaptation of infrastructure necessary for investors.
During debates, members of the city council voiced their opinions about budget amendments and explained their own proposals.
Committees of Riga City Council viewed various proposals for budget amendments, as well as requests for additional funding. For example, the Housing Department requested EUR 2.49 million, Riga Monuments Agency requested EUR 105 000, and the Education, Culture and Sports Department requested additional EUR 10.5 million from the budget.
On Wednesday, the 22nd of March, Riga City Council approved amendments to the capital city’s budget for 2023.
The budget is focused on reorganisation of the city’s economic operations. The priorities listed in the budget include restoration of streets, expansion of social support, as well as education workers’ wages and modernisation of schools. The main challenges for this year’s budget include not only the growing electricity and utility bills but also consumer price growth. All of this affects residents and the municipality’s expenditures.
Riga City Council plans its revenue to reach EUR 1.192 billion, which is EUR 196 million more than last year. The growth of income is dictated mainly by the planned increase of PIT of EUR 172 million, according to forecasts from the Ministry of Finance.
Total budget expenditures are planned at EUR 1.404 billion, which is EUR 249 million more than a year prior. The different between revenue and expenditures is planned to be covered from the remaining budget balance from 2022.
The majority of funding will go to education (EUR 465 million), road traffic (EUR 361 million), social sector (EUR 173 million), housing (EUR 74 million), culture and sports (EUR 40 million) and the environment (EUR 8 million). Contributions to the municipal financial equalisation fund increased this year, reaching EUR 125 million.
The municipality continues significantly increasing investments towards the city’s transport infrastructure. This year it will reach its historically largest volume – city street and road maintenance, bridge maintenance, construction of new infrastructure. EUR 41 million will go to these activities.
To enhance the capacity of Riga public transport sector the grant to Rīgas satiksme has increased by EUR 17.5 million, reaching EUR 150.6 million, this year.
Approximately EUR 6 million is planned to go towards the first stage of reconstruction of Victory Park.
Improvement of housing accessibility and security will continue as well. Funding of EUR 1.5 million is planned to go towards various apartment repair projects.
Investments into the city’s security are also planned. Riga City Council has plans to double the number of surveillance cameras in the city. 236 new cameras will be installed in addition to 237 existing cameras. Funding of EUR 377 000 is planned for this.
Funding towards culture and sports will return to its pre-pandemic level in 2023, reaching EUR 40 million.
Riga will remain the place that hosts important events and welcomes tourists. Next year Riga will host a stage of FIA World Rally Championship in 2025 Riga will host FIBA EuroBasket Championship.
Also read: Russia boosts its defence in the Kuril Islands