Riga, Feb 17 (LETA) - The municipality of Cesis plans to spend 18.4 percent more this year than last year, according to the budget for 2025 approved by the councilors.

This year's budget expenditures, as well as revenues, are planned at EUR 126.45 million.

The municipality's basic tax revenue is planned at EUR 43.1 million, which is 10 percent more than last year. The largest share of tax revenue is accounted for by personal income tax (90.1 percent) and real estate tax (7 percent). Budget commitments represent 9.59 percent. Last year it was 10.24 percent.

The municipality explains that the increase in revenue is mainly due to changes in the distribution of state tax revenue and co-financing from European Union (EU) funds. However, the main drivers of the increase in expenditure are the increase in the minimum wage and teachers' salaries, the increase in heating and maintenance costs, as well as higher investments in infrastructure projects.

The priorities of this year's budget are the attraction of EU and other external financial instruments and the implementation of projects in line with the Sustainable Development Strategy and the Development Program of Cesis municipality, where the priorities are social protection of the population, digital literacy and digital transformation of the economy, improvement and extension of the housing stock, promotion of the circular economy and sustainable entrepreneurship.

The implementation of the "Cesis - Latvian Capital of Culture 2025" initiatives is also highlighted as a priority in the municipality's budget.

The largest share of the budget, 42.2 percent or EUR 53.4 million, is earmarked for education. The funding is earmarked for increasing teachers' salaries, developing the infrastructure of educational institutions and the Latvian School Youth Song and Dance Festival.

Free school lunches for pupils in the region's educational institutions are to be maintained at the current level, with EUR 2.4 million, 9.6 percent more than last year. A further EUR 522,900 is planned for school buses. This year, the municipality will also continue to provide swimming lessons for pupils in the younger grades in the municipality.

Economic activity accounts for 23.1 percent of the municipality's basic budget expenditure, or EUR 29.18 million. The budget foresees EUR 9 million or 7.1 percent of the total expenditure of the municipality's basic budget for the management of municipal territory and housing. The social protection function is budgeted at EUR 9.76 million, or 7.7 percent of total core budget expenditure. Recreation, culture and religion are budgeted at EUR 8.5 million, or 6.7 percent of total basic budget expenditure.

This year, work on the implementation of several infrastructure development projects in Cesis municipality will continue. Currently, a total of 42 development projects are in various stages to improve infrastructure and the quality of life of the population.