Riga approves 2017 budget

On Tuesday the Riga City Council approved the city's 2017 budget with projected revenues of €856.5m and expenditures of €885.4m.

This means that the city will run a budget deficit of 3.3%.

The revenue projection for next year is €47.3m (5.8%) higher than this year. Budget reserves are estimated to stand at €24.9m at least at the end of 2017.

The largest part of Riga budget revenue next year is made up of revenue from personal income tax - €545.1m. Property tax is estimated to total €107.4m, and transfer payments from the state budget - €145.6m.

According to the Riga City Council, budget deficit will decrease over the next three years. In 2018, budget revenue is estimated to reach €891.3m and expenditures €886.9m, and in 2019 - €896.1m and €900.5m respectively.

Riga budget priorities next year will be social support, education, and infrastructure development.

€328.7m or 36.8% of total budget expenditures will go to education, €83.7m (9.36%) to social protection, €221.2m (24.7%) to economic activity, €91.8 million (10.2%) will be paid into the municipal cohesion fund, €72.6m (8.1%) will be spent on general public services, €28.5m - on housing and land management, €42.1m on recreation and culture, €3.9m on environmental protection, €18.5m on public security, and €3.3m on healthcare.

The economic activity spending will be used for implementation of infrastructure and public transport programs, street maintenance, Riga Construction Board, tourism development programs, land acquisitions for municipal needs, and others. €96.8m has been set aside for Riga public transport, and €11.6m for street reconstruction.

Budget investments are planned at €51.7m next year. Funding for projects co-financed by the European Union and for other projects is projected at €40.1m.

In late October, Standard & Poor's affirmed Riga's credit rating at BBB+/A-2 with a stable future outlook.

(Graphic: Long-term debts of the Rīga municipality in millions of euros, with a forecast for 2017. Credit: Riga.lv)

Seen a mistake?

Select text and press Ctrl+Enter to send a suggested correction to the editor

Select text and press Report a mistake to send a suggested correction to the editor

Related articles
Most read

Please be aware that the LSM portal uses cookies. By continuing to use this site, you agree that we may store and use cookies on your device. Find out more

Accept and continue