Riga City Council expects EUR 140 million more in budget revenue than last year

On Wednesday, the 25th of January, Riga City Council passed the municipality’s budget, the revenue in which is planned to be EUR 140 million larger it was in 2022.
In November 2022 Riga City Council amended the municipality’s budget, planning revenue at nearly EUR 1.038 billion. For 2023 revenue is planned at EUR 1.179 billion. Expenditures, on the other hand, are planned at EUR 1.26 billion, which is approximately EUR 73 million more than the year prior.

Expenditures will exceed budget revenue by EUR 77 million.

Members of the city council were told that this is an interim, technical budget. It will be amended once the state budget has been passed and the government has reached an agreement with Latvian Association of Local Government. The budget plan will be based on estimates of the Department of Finances, external regulations that govern teachers’ wages and increase of minimal wages, as well as the city council’s previously made decisions.
The budget was formed without political discussions regarding allocation of finances towards priorities. The budget is based on the estimate that it will not exceed one-twelfth of monthly expenditures.

It is planned for work on budget amendments or the «real budget» to commence in February.

The budget committee will call a meeting to discuss budget amendments on the 3rd of March. The meeting of the Finance and Administrative Affairs Committee is scheduled to hold its meeting on the 9th of March. The final decision about the municipal budget is planned to be made on the 22nd of March unless the state budget approval is not postponed.
Also read: Riga City Council committee supports increasing wages for deputies