The budget for Riga this year was adopted in early April, when the state of emergency of COVID-19 was already in place. In view of the potential consequences of this crisis, the budget identified a special reserve fund of EUR 13.8 million.
It is planned to allocate a further large portion of the reserve fund funds on Friday, June 19, to compensate local government authorities and companies for losses caused by COVID-19.
The money is to be distributed for the following purposes:
- EUR 10 257 – for the wage supplements for employees of the social care center “Gaiļezers” and Riga shelter,
- 66 050 for the Welfare Department and several social care institutions for the purchase of disinfectants,
- 420 000 – compensation to Riga Zoo for income lost during the emergency.
- EUR 2 291 656 – compensation for losses for the municipal company Rīgas Satiksme.
The City Council's Department of Finance forecasts that about half of the reserve funds will be spent in the first half of the year. As a result, €6 to €7 million will remain in reserve for other needs, including a possible second wave in the autumn.