bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 13.11.2018 | Name days: Jevgēņija, Jevgēņijs, Eižens
LatviaLatvia

Ministry: municipalities’ expenditures increase for EU fund projects

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn the first half-year of 2018, a surplus of EUR 57.8 million formed in municipal budgets. This is EUR 43.1 million less than the surplus that formed in municipal budgets last year. Smaller budget surplus can be explained with intensive realization of EU projects in municipalities. As a result, total expenditures have increased by EUR 95.7 million or 8.4% when compared to the first half-year of 2017, according to information from Finance Ministry.

The ministry notes that in accordance with the State Treasury’s operative account, total municipal budget revenue in the first half-year of 2018 grew by EUR 52.6 million or 4.2%.

Tax revenue grew by eight million euros or 1% in this period. The largest tax revenue came from personal income tax and real estate tax, which historically form nearly 99% of municipalities’ tax revenue.  PIT revenue in municipal budgets has grown by EUR 7.1 million or 1.1%. Real estate tax revenue, on the other hand, has declined by 1.3 million or 0.9%, as detailed in the report.

The ministry explains that PIT was affected by multiple factors, including the tax reform, which came to force 1 January.

«The tax reform has added several important changes that have a major effect on PIT revenue. Changes include increased subsistence minimum (from EUR 380 to EUR 430), introduction of a progressive income tax, increased differentiated tax-free allowance, increased benefits for dependents and increased tax-free allowance for pensioners. To compensate tax reform’s influence on municipal budgets, a special grant is planned to be provided to municipal budgets in the first half of 2018 worth EUR 10.9 million so that their total tax revenue together with special grants form 19.6% of budget tax revenue without state social insurance fees,» the ministry explains.

The report also mentions that PIT revenue was also affected by PIT payments. «According to data from the State Revenue Service, payments worth EUR 110.9 million were performed in the first half-year of 2018. This is EUR 31.8 million or 40.2% more than last year. It should be said that the outlook detailed in the State Budget Law for PIT was not reached in the first half year of 2018. Because of that it was decided to compensate from the state budget EUR 7.8 million to municipalities in order to help them reach the required PIT revenue level.’

Real estate tax revenue declined for the first time in five years. A decline of EUR 1.3 million, which can be partially explained with State Land Service’s decision to reduce by 30% cadastral value of land used for residential buildings and which is detailed in the Cadastral Information System as cultural monument, Finance Ministry notes.

An increase of EUR 48.1 million was observed for state transfers to EU policy instruments and other foreign financial assistance projects.

Non-tax revenue declined by EUR 4.2 million or 13%, forming EUR 27.9 million. The decline is associated with land sale in Q1 2017. Revenue from paid services showed an increase of EUR 2.9 million or 4.4%, reaching EUR 67.4 million, as stated in the report.

Finance Ministry adds that total expenditures of municipal budgets have grown by EUR 95.7 million or 8.4%, reaching EUR 1.238,9 million. Expenditure increase rate is slower than it was in the first half of 2017 (14%). But it is important to keep in mind that the high growth rate of 2017 was secured by low expenditures base in 2016, especially low EU fund expenditures. In the first half of 2018, total EU fund project expenditures showed a EUR 47.5 million increase, reaching EUR 75.4 million.

«It is thanks to active realization of EU fund projects our capital expenditures have increased by EUR 46.4 million or 32.7%. The largest capital expenditures increase was secured by repair and reconstruction plans, which have increased by EUR 29.2 million,» the ministry explains.


Leave a reply

Healthcare Minister: there will be funding for State Emergency Medical Service

Latvian Healthcare Minister Anda Čakša has decided to support State Emergency Medical Service’s plan for organization of work. She has confirmed that funding to cover pay for extended work hours will be allocated next year, as reported by Healthcare Ministry’s Communication Office director Oskars Šneiders.

Unemployment level in Latvia remained at 6.1% in October

In October 2018 unemployment in Latvia was at 6.1% of the country’s economically active residents, according to information from the State Employment Agency.

NAF Commander: tensions on a rise in the world, but Latvia can sleep peacefully

The political situation in the world develops in accordance with a sinusoidal principle – sometimes tensions increase, sometimes things calm down, said Commander of Latvian Armed Forces Leonīds Kalniņš in an interview to LNT.

Construction production output in Latvia up 10.3% in Q3

Compared to Q3 2017, construction output increased by 10.3 % in Q3 2018. Construction output rise was observed in construction of buildings (of 9.2 %), civil engineering (5.7 %) and specialised construction activities (19.7 %).

Brexit talks until 2.25am result in UK seeing progress toward deal

The British government, its representatives and negotiators of the European Union have spent a considerable part of the night to Monday, November 12, to make at least a few steps into the direction of the burning deal on the UK leaving the bloc.

Corruption watchdog takes notice of Jurmala mayor’s expensive and undeclared furniture

Corruption Prevention and Combating Bureau has taken notice of several units of expensive furniture Jurmala Mayor Gatis Truksnis had purchased for his personal needs by spending an amount of money larger than his salary in the municipal office. On top of that, these purchases do not show up in his declaration, as reported by Latvijas Avīze.

Border guards find nearly 30,000 counterfeit impotence treatment pills in person’s luggage

During a regular baggage inspection at Riga International Airport, officers of the State Border Guard found a large number of prescribed medicines for treatment of impotence in some passenger’s baggage.

Swedbank joins Europe’s flash transaction system

Continuing development of its digital services, Swedbank has joined Europe’s flash transaction system. This means that additionally to immediate transaction processing for transactions within Swedbank network in Baltic States, clients can also receive flash transaction processing with other European banks that support this system...

Not listening! Ukraine rebels hold «elections», deaf to criticism from Kyiv, West

In eastern Ukraine, Russia-aided separatists have held parliamentary and presidential «elections» with acting leaders expected to win the vote branded as illegitimate by Ukraine, France and Germany.

Rīgas satiksme’s debts come close to 300 million; Ušakovs says company is doing well

Riga City Council has voted in favour of allocating an additional grant of EUR 22 million to Rīgas satiksme. This means this year the company has cost the city EUR 123 million, reminds Nekā personīga.

In pictures: World powers mark 100 years since end of World War I

While many Eastern and Nordic European nations mark 100 years since the establishment of their statehood, for Western Europe the year 2018 is the centenary since the end of the First World War.

New Unity wants to be in charge of Environment Ministry in Latvia’s new government

New Unity wants to be in charge of Latvia’s Environment Protection and Regional Development Ministry in the new government, says New Unity politician, Economy Minister Arvils Ašeradens.

Poland marks centenary since founding of its modern independence

Poland has marked a century since the establishment of modern national independence of Poland on Sunday as more than 200,000 people marched through the capital.

California hit by deadliest wildfires since 1933

31 people have lost their lives in wildfires currently raging in the U.S. state of California, as over 200 hundred people are unaccounted for, according to statements by local authorities.

Air temperature to remain above 0° C in Latvia this week; strong wind expected

This week’s weather conditions in Latvia will remain similar to previous weeks – air temperature above 0° C with clouds covering the sky. Some sunlight is expected every now and then, however. Precipitation and strong wind is expected in many of Latvia’s territories, as reported by State Environment, Geology and Meteorology Centre.

Week in Lithuania. Conservatives pick Simonyte as presidential candidate

Lithuania's opposition conservative Homeland Union – Lithuanian Christian Democrats has picked MP and former Finance Minister Ingrida Simonyte as the party's presidential candidate in a primary election held last weekend.

BNN summary of the week: 13th Saeima’s meeting; expensive medicines; continued government formation in Latvia

BNN offers a summary of this week’s topical news in a variety of categories: Progress; Announcement; Expectations; Plea; Decision; Saeima.

Study: 56% of Latvian residents provide support to their retired parents

More than half of Latvian residents provide support to their retired parents. 30% of residents provide financial assistance, according to results of a study by SKDS and INVL pension fund.

Bank of Latvia governor made suspect in another criminal process headed by CPCB

Ilmārs Rimšēvičs, governor of the Bank of Latvia, has been made suspect in another criminal process investigated by the Corruption Prevention and Combating Bureau.

Export volumes in Latvia up 5.1% in September; timber remains at the top

In September 2018 foreign trade turnover of Latvia amounted to EUR 2.42 billion, which at current prices was 5.1 % more than in September 2017, of which the exports value of goods was 1.0 % lower, but imports value of goods was 10.3 % higher.

Party asks ministry to assess if Riga mayor acted legally by not viewing tax matter

Riga City Council’s National Alliance ‘All for Latvia’ – ‘For Fatherland and Freedom/LNNK’ has turned to Environment Protection and Regional Development Minister Kaspars Gerhards with a request to evaluate the decision of Riga Mayor Nils Ušakovs to exclude from the agenda the matter on real estate tax discounts, as confirmed by the party’s representative Edvards Ratnieks.

Norvik Banka changes name to PNB Banka

As of 9 November Norvik Banka Group is known as PNB Banka. The bank will continue providing all of its services without complications. All contracts and agreements signed with AS Norvik Banka remain in force. Communication with customers will continue as usual in all of the bank’s branch offices in Latvia, as confirmed by PNB Banka communication manager Vineta Vilistere-Lāce.

Grindeks: medicines to become more expensive because of new European requirements

Due to the adoption of a verification system to check safety of medicines, medicines are expected to become more expensive, said Juris Bundulis, board chairman of Grindeks.

Vivid selection of Latvian culture on offer in Tartu for 9 days

The Estonian city of Tartu is hosting nine days of selected Latvian culture events up until the centennial of Latvia on November 18. The events begun on Friday with the opening of the photography exhibition by internationally acclaimed photographer Zaiga Šteina.

Separatists in Ukraine to hold disputed elections

Russia-aided separatists in eastern Ukraine will hold presidential and parliamentary elections in two self-proclaimed republics this weekend, despite of criticism from Kyiv and the European Union.

Newest comments