RIGA, Nov 30 (LETA) - After local governments' share of revenue from personal income tax is cut from 80 percent to 75 percent, living standards in the regions will deteriorate, and the poorest local governments will suffer the most, several Saeima opposition members said today during debates on the medium-term budget framework for 2021-2023.

Saeima majority today turned down the Greens and Farmers' Union proposal to keep local governments' share of personal income tax revenue unchanged at 80 percent.

MP Dana Reizniece-Ozola (Greens/Farmers) emphasized that the government would cut local governments' revenues by approximately EUR 90 million, and at the same time increase their expenditures by about EUR 50 million. These changes will have the biggest impact on Latgale regions, she said.

The government's promises to support local governments during the administrative territorial reform have now been forgotten, said Reizniece-Ozola. Deteriorating living standards will prompt residents in the regions to seek jobs in Riga or abroad.

Inga Goldberga (Harmony) said that local governments would be short of EUR 140 million if the government's bill was approved. This will mean further centralization of power and a new downturn in the regions, she believes.

MP and ex-Prime Minister Maris Kucinskis (Greens/Farmers) said that, for some fifteen years now, the government's position had been that the basic financing for local governments may not be reduced. What the government is doing now could be called a great experiment, but no one has ever explained why, said Kucinskis.