The government has not officially asked municipalities to consider austerity measures, admitted Riga Vice Mayor Edvards Ratnieks (National Alliance) in an interview with the Latvian Television program Rīta panorāma.
Although no formal request to implement austerity has been made, “certain winds are being felt,” the politician acknowledged. Therefore, the municipality has compiled several possible solutions, which are planned to be specified over time. Ratnieks, who is responsible for issues related to security, property, housing, and the environment, hopes that savings will not be made at the expense of the investment budget, as such funding is essential for the city’s development.
Some public services may need to be reduced, Ratnieks said, though he did not specify which ones. “The coalition will have to make collective, but painful, decisions,” the politician noted.
Riga is also considering ways to reduce bureaucracy, as any potential savings must be realized. Possibilities for cutting bureaucracy are being explored in departments, municipal administrations, as well as in education and social sectors, the vice mayor explained.
Commenting on heating tariffs in Riga,
Ratnieks revealed that the increase in prices was due to “emerging competition from private players.”
It turns out that the more competition there is, the higher the prices, he remarked, adding that competition is supposed to bring the opposite effect – to lower costs for consumers.
Speaking about development projects, Ratnieks pointed out that the Central Market has suffered from the wear and tear of time.
Therefore, the goal of Ratnieks and the National Alliance is to create a modern Central Market by attracting various investments. The required sums are very large, and the work involved is extensive. The opposition has proposed ideas for public–private partnerships, and Ratnieks sees no issue in temporarily handing over the market to private investors – similar to what has been done with the Āgenskalns and Matīsa markets.
As previously reported by LETA,
sectoral ministries had until the 30th of June to submit proposals for reducing expenditures by 150 million euros.
Finance Minister Arvils Ašeradens (New Unity) informed Prime Minister Evika Siliņa (New Unity) that the ministries have fulfilled the government’s task, submitting a total of 250 proposals aimed at reducing spending to enhance the efficiency of the public sector, strengthen fiscal resilience, and reduce administrative costs.
According to the Ministry of Finance, the proposals submitted by the ministries concern cuts to remuneration, subsidies, goods and services, and other types of expenditures.
According to the 2026 budget development schedule, an informative report on spending reductions and reassessment will be submitted to the Cabinet of Ministers by the 19th of August.
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