Municipal finances doing poorly, says head of association

The financial situation is not stable in any municipality, said Gints Kaminskis, Chairman of the Latvian Association of Local Governments (LPS), in the Latvian Television program "Morning Panorama" August 7. 

He said that even those municipalities that have more financial resources are not in a stable financial situation, because "none of them can fulfill the expectations they had a year or two ago".

There are also signals that municipalities are reviewing their administrative functions due to a lack of funds.

Kaminskis added that it is more important to look at next year's budget. Predictability and clarity about the future are what municipalities most expect from the state, Kaminskis said, adding, "Those few months should not be spent talking about what is lacking this year."

"Predictability is the most important thing. Stable, sufficient base funding. Additional funding is a must if local governments are to be able to sustain the current situation and develop. (...) If the State has taken decisions that have a negative fiscal impact on municipal budgets, in such cases the State must say what the compensation is. A municipality is not a budget for one sector - it is a multi-sectoral mechanism like the state," Kaminskis noted. 

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