On January 26, Riga City Council adopted the municipality’s new budget, outlining three priorities – social aid, wages and transport infrastructure.
The meeting during which the city council reviewed the 2022 budget lasted for more than seven hours. More than five hours were spent discussing the municipal budget.
Riga’s budget revenue is planned at EUR 996 million, which is EUR 11 million more when compared to 2021.
General budget expenditures are planned at EUR 1.15 billion. Most of this amount will go to education (EUR 397 million), transport (EUR 300 million), social sector (EUR 121 million), housing (EUR 56 million), culture (EUR 32 million) and the environment (EUR 15 million).
This year there was a major increase of Riga’s contribution to the municipal finances equalization fund, reaching EUR 97 million.
Considering the situation on the labour market, Riga municipality plans to gradually increase wages for different groups of employed people, allocating additional financing of EUR 4.3 million in 2022. This will help increase wages by 4% to 8%.
It is planned to increase wages of the municipality’s medical workers by 10% from January 1 onward. From September 1 onward teachers will be paid EUR 70 more.
EUR 775,000 will be allocated to help increase wages of Riga Municipal Police. EUR 692,000 will be allocated to help increase wages of the Welfare Department. EUR 138,000 will be provided to increase wages of Orphan Court employees. EUR 428,000 will be provided to the City Development Department to increase wages of its employees.
Budget expenditures are planned to be increased for social protection as well. Compared to the 2021 budget, an additional amount of EUR 8.7 million will be allocated towards different social expenditures. In general Riga municipality’s budget expenditures for social activities reaches EUR 121 million, preserving the expenditure percentage above 10% of general expenditures.
EUR 14.5 million is planned to be spent on social benefits, with the biggest amount going to housing benefits and housing care.
To help social partner pay for utilities, it is planned to increase the price of municipality’s procured services. There are plans for repairs at social institutions and new social services for families with special needs children.
Life insurance policy will be accessible to all technical staff of education institution.
In 2022, Riga municipality has plans for investments of 93.3 million, which is EUR 49.8 million more than what was planned in last year’s budget. A large portion of planned investments consists of state investments and loans for projects intended to reduce the impact of Covid-19 crisis.
This year it is planned to continue the construction of the eastern highway, the cycling roads connecting Riga centre and Ziepniekkalns and Imanta and Daugavgriva, Skulte bypass and revitalization of Skanste’s territory.
Using assistance from EU funds it is planned to commence increasing energy efficiency of Riga sports arena, Ilguciems Culture Centre, Riga’s 9th Secondary School on Stamerienas Street 8, Riga 63rd Secondary School on Baltezera Street 6 and Riga Young Technicians Centre on Bauskas Street 88.
There is also financing planned for the development and construction of Rail Baltica-related city centre infrastructure.
For the next three years it is planned to allocate EUR 2.35 million towards 18 high-readiness and priority initiatives, such as the new kindergarten on Dignajas Street, further organisation of Espanade territory, establishment of lighting in Nordeku and Ebelmuiza parks and other infrastructure improvement projects.
Riga’s budget also includes plans to activities to support entrepreneurship – co-financing for owners of buildings worth EUR 1.48 million. There are plans to allocate EUR 336,000 towards support of innovative economy and entrepreneurship. (BNN/Business World Magazine)
