Riga, Nov 7 (LETA) - The association of Riga and Pieriga municipalities Riga Metropolis calls for a freeze in municipal contributions to the financial equalization fund, Inese Ozolina, the association's communications specialist, told LETA.

Next year, the Riga regional municipalities will contribute almost EUR 186 million to the financial equalization fund, which is EUR 11.3 million or 6.03 percent more than this year. These municipalities are in fact the only ones paying into the fund, while the other municipalities are the recipients.

In 2025, contributions to the Fund for Equalization of Local Government Finances are planned to amount to almost EUR 186 million. These funds will be taken away from the successful development of Riga and Pieriga region, the organization said.

Edvards Ratnieks, Riga Vice Mayor and co-chairman of Riga Metropolis (National Alliance/LRA), calls for a freeze on this year's contributions until the municipal financial equalization model is changed. "The capital will have to pay EUR 5 million more into the fund, despite the fact that we have already pointed out that it would be important not to impose additional financial burdens on municipalities with the current increase in municipal costs and the delegation of new functions," Ratnieks explained.

In his view, Riga and the Pieriga region are currently being "milked to the bone", while at the same time maintaining or even increasing the requirements for the development of the metropolitan region and its competitiveness in the Baltics.

Ratnieks pointed out that ten municipalities are contributing to the fund this year. These are the Riga Metropolis municipalities - Riga, Adazi, Marupe, Kekava, Olaine, Ropazi, Salaspils, Saulkrasti, Sigulda and Jurmala, which is not a member of the organization. The other Latvian municipalities are grant beneficiaries.

In 2025, Riga will contribute more than EUR 138 million to the equalization fund, Marupe municipality - EUR 19.7 million, Ropazi municipality - EUR 9.5 million, Kekava municipality - EUR 7 million, Adazi municipality - EUR 6.9 million, Saulkrasti municipality - EUR 1.8 million, Salaspils municipality - EUR 1.4 million, Olaine municipality - EUR 1 million.

Olaine municipality will have the highest percentage increase, up 35 percent to EUR 1.4 million. Saulkrasti municipality will see a 31 percent increase to almost EUR 2 million. The third largest increase will be for Marupe municipality - by 18 percent.

Rigas Metropolis has previously pointed out that in recent years, local governments have faced a sharp rise in costs and the delegation of new functions, transferred from the state to local governments. The revenue share, however, does not cover these cost increases, despite the increase in the national average wage.

For example, changes in the minimum wage, the new teacher remuneration model and the reorganization of the school network, the increase in the co-payment share for the catering service for children in educational institutions, the takeover of the costs of community-based social services in the de-institutionalization project, providing transportation for school children along with the optimi\ation of the school network, substantial increases in interest rates on State Treasury loans, costs related to the provision of municipal police functions, substantial increases in electricity and heating costs, rising construction costs, and others.