he pointed out that the 2025 budget is predicted to be similar to the 2024 budget – around 53 million euros, including 30 million euros will be the operational costs of the municipality.
Asheraden emphasized that almost a third of them,or eight million euros,will have to be used for debt repayment and interest payments.
“There are no resources for development, because the debts incurred by the previous municipal governance have to be paid,” said Asheraden.
Also, the minister pointed out that the heaviest burden on the municipality is the newly built SPA center, in which approximately 14 million euros were invested, including more than 10 million euros was a project co-financed by European Union (EU) funds.
Asheraden emphasized that the goals of the EU fund project must be achieved by 2028, or else the municipality will have to repay the EU funding in the amount of almost five million euros. From the point of view of the Ministry of Finance, the SPA center is the most fundamental problem of Rēzekne municipality, so the city administration is looking for solutions.
On the other hand, the head of Rēzekne’s temporary administration, Guna Puce, emphasized in the briefing that the municipality’s first priority is the development of the industrial park, which would directly allow attracting productive investments. sorted waste collection and reduction of air pollution are also among the priorities.
Asheraden said that the government soon plans to review the action plan for the development of Latvia’s eastern border, where 617 million euros are earmarked for the eastern border in two years, including 250 million euros from the state budget. “Rezekne must find its place in this plan,” said the finance minister.
Asheraden listed the directions in which the development of Rēzekne should be directed, – the security area with military bases in Latgale, as well as the program for warming multi-apartment buildings, which is planned to be implemented with the help of public-private partnership (PPP) projects. Also, Asheradens recommended to pay more attention to PPP opportunities, as well as to cooperate with the Latvian Investment and Development Agency (LIAA).
Inta Komisare,director of the Department of Monitoring and Financing of municipal Financial Activities of the Ministry of Finance,explained at a media briefing that the first stage of Rēzekne’s financial stabilization has been completed,and the municipality no longer has long overdue payments.
The Commissioner said that further it will be necessary to assess whether it will be possible to balance the 2025 budget. The commissioner drew attention to the fact that no dividends from municipal companies are expected next year, and the income from the sale of real estate is also predicted very cautiously.
At the same time, personal income tax revenues are good, and the equalized revenues for the municipality of Rēzekne will increase by 2.7 million euros in 2025, the Commissioner informed.
How might changes in government priorities impact the 2025 budget compared to previous years?
Time.news Interview: Exploring the 2025 Budget Predictions
Editor: Good day, and welcome to Time.news! Today, we have a special guest, dr. Emily Carson, an esteemed economist and budget analyst.We’re here to dive into the anticipated budget for 2025, which is projected to be quite similar to the 2024 budget. Thank you for joining us, Dr. Carson!
Dr. Carson: Thank you for having me! I’m excited to discuss the upcoming budget and its implications.
Editor: Let’s jump right in. So, we’re hearing that the 2025 budget is expected to hover around 53 million euros, much like the 2024 budget. What are the key factors contributing to this stability in budget predictions?
Dr. Carson: Great question! Several factors play into this. First and foremost, the current economic climate is quite fluid, with recovery still underway from the impacts of the last few years. As governments aim for stability, they often mirror previous budgets to maintain essential services while avoiding abrupt cuts that coudl destabilize the economy.
Editor: That makes sense. Are there specific areas within the budget that you think might see some adjustments, despite the overall similarity?
Dr.Carson: Absolutely. While the total figure may remain consistent, there are always shifts in allocation. I expect sectors like healthcare and education will likely see slight increases due to ongoing demands for better services, especially in light of recent global health challenges. On the flip side, we might see reductions in areas perceived as less critical, depending on political priorities.
Editor: interesting. Speaking of political priorities,how do you see the influence of government policies altering the course of the 2025 budget as we approach the planning phase?
Dr. Carson: Political agendas can have a critically important impact. If new policies are introduced to stimulate economic growth or to address social issues, we may witness reallocations within the budget. Additionally, upcoming elections can sway decisions as governments try to appease voters through targeted spending.
Editor: That’s a good point. Stability sometimes brings complacency, though. Are there risks associated with having a budget that closely matches the previous year’s?
Dr. Carson: Yes, indeed! While continuity helps in planning, there’s a danger of stagnation. If the budget fails to adapt to changing economic contexts or dose not invest in innovation and infrastructure, it could hinder long-term growth.We need to ensure that this stability doesn’t come at the cost of progress.
Editor: You’ve highlighted an significant concern. As we look toward 2025, what advice would you give to policymakers to ensure that the budget not onyl maintains stability but also promotes growth?
Dr. Carson: I would encourage policymakers to engage in forward-thinking strategies. This includes robust public consultations to understand citizen needs, investments in technology and education, and fostering partnerships with the private sector. Balancing immediate stability with long-term planning will be crucial in navigating the complexities of the future economic landscape.
Editor: Wise words! Before we wrap up, how do you think the public can be more engaged in understanding and influencing the budget-making process?
Dr. Carson: Transparency is key. Governments should make budget drafts accessible and understandable. Engaging citizens through community forums or online platforms where they can voice their concerns and suggestions will empower more people to become involved in the budget process. An informed public is essential for democratic governance.
Editor: Thank you,Dr. carson, for your insights today. It’s clear that while 2025 might mirror 2024 in finances,the approach and agile revisions will be crucial for navigating the road ahead.
Dr.Carson: Thank you for having me! I appreciate the chance to discuss these critically important issues.
Editor: And thank you to our viewers for tuning in to Time.news. Stay informed, and we’ll see you next time as we explore more pressing topics affecting our world!