Narva’s budget is increasing once again. Against the backdrop of a bleak forecast for next year

2023-11-10 11:43:03

The draft third additional budget for Narva did not raise any questions at a joint meeting of the commissions on entrepreneurship and development projects and education. Photo by Alexander Myasoedov

The city government proposes to Narva deputies to adopt the third additional city budget – everything is in order with the city’s finances in 2023.

The next financial year could begin in Narva with very serious savings in city funds.

14 million euros in the black
Despite the fact that the outgoing year turned out to be quite difficult for Narva, the draft resolution on the third additional budget looks very optimistic. According to the Director of the Financial Department Elena Golubeva, by the end of the year the Narva city treasury increased by 13.9 million euros. Thus, the volume of the adjusted budget is 148.3 million euros. Let us remind you that the Narva budget adopted in December last year was approved in the amount of 109.4 million euros. Then in April 2023 it was increased for the first time to 117.4 million euros, and for the second time in June – to 134.3 million euros.

Including the contribution of the Narvitians
As Elena Golubeva reported, the budget increase was due to the excess of planned revenues from various sources. For example, tax revenues turned out to be almost 1 million euros more than expected.
The next increase in budget revenues occurred, however, not only due to an increase in income tax and other favorable sources, but also due to an increase in the cost of city services for Narvitians. For example, in the third additional budget, the increase in income from educational activities is 117.3 thousand euros, including due to an increase in parents’ expenses for feeding children in kindergartens in Narva.

A little from many
The increase in income from the sale of goods and services amounted to a total of 338 thousand euros. There was also an increase in income from social assistance activities by 197.1 thousand euros. In addition, revenues have increased, for example, in the social sphere – for the provision of rehabilitation services, the provision of general nursing services, replacement care services, and vocational rehabilitation.

We have already squeezed out everything we could, even some necessary expenses. Now we are scratching our heads: what to do?

Although by relatively small amounts, income also increased on many other points, for example, due to an increase in rental income, receipt of subsidies, due to fines for violating parking rules, and compensation for insurance damage. By the way, even our long-suffering toilet on the promenade, which was subject to robbery and attacks by vandals, nevertheless increased the city’s income by 290 euros.

The next budget is scary
If everything is fine with the 2023 budget, then the coming year threatens Narva with a regime of severe austerity. The city’s expenses are increasing sharply for various reasons; municipal institutions will be hit especially hard by the rising cost of heating, which has almost doubled. City authorities are forced now, while preparing the draft budget for 2024, to look for ways to save money. Narva Gazeta has learned that, for example, educational institutions in Narva have already been recommended to identify the possibility of reducing personnel costs by 10 percent. However, for example, kindergarten directors, according to them, have no reserves for a long time. “We have already squeezed out everything we could, even some necessary expenses. Now we’re racking our brains: what should we do?” they wondered in a conversation with a journalist.

Institutions are waiting for proposals
Director of the Financial Department Elena Golubeva gave NG the following comment on this matter: “Institutions have been sent maximum amounts in terms of expenses for drawing up the budget of the city of Narva for 2024. The caps are based on 2024 revenue forecasts and 2023 budget data received from agencies to date, taking into account expected performance and estimated unused budget balances.”

Director of the Financial Department of the Narva City Government Elena Golubeva: “We are waiting for proposals from institutions on savings from internal reorganization.” Photo: Alexander Myasoedov

According to Golubeva, when drawing up a budget, institutions must plan their activities conservatively, sustainably and efficiently. “If, in order to plan and implement goals and actions, it was assessed that significant activities may not be sufficiently financed, then the costs of these actions, as an exception, can be presented separately in the form of an additional list of actions with amounts,” recalls the head of the department.

“The institution’s budget can contain a list of reserve actions, the implementation of which is feasible only when income is received in a larger volume than was originally planned.”

Golubeva confirmed that institutions are expected to propose proposals for savings from internal reorganization and for increasing the city’s revenue base in terms of providing services and receiving payments. The Finance Department expects to receive this data by November 14, 2023.

Alexander Myasoedov

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