Rēzekne's budget troubles continue

The state is prepared to financially help the bankruptcy-facing municipality of Rēzekne with a loan of EUR 5 million only if the municipality can prepare the budget for this year without a deficit. That hasn't worked so far, and Rēzekne municipality is still in financial danger, Latvian Radio reported January 30.

Initially, the municipality submitted a budget with a deficit of EUR 1.3 million, then a deficit of EUR 2.27 million, but currently the deficit has increased to more than EUR 3.4 million. This is because on Monday the local government received the latest payment request for the construction of the recreation center for EUR 1.2 million.

In the coming days, another meeting of the budget task team is planned to look for more ways to cut expenses while the final word will have to be taken by deputies of Rēzekne City Council, who confirmed at the previous meeting of the city Council that unpopular budget trimming decisions are being voted against or abstained.

Acting Chair of the Rēzekne City Council Aleksejs Stecs said: "In our estimation, the last installment of 1.2 million that we will have to seek in the current year's budget, given the shortfall already in place, we will have to re-examine the sources of potential saving and debate with Members [..].'

As reported earlier, Minister of Environmental Protection and Regional Development Inga Bērziņa has said that the Saeima might decide to dismiss the council if it is unable to come up with a balanced budget.

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 important