RIGA, Jan 14 (LETA) - Revenue in Riga's 2025 municipal budget is projected to grow by EUR 50 million from last year, while budget expenditure is expected to increase by EUR 110 million, according to the Latvian capital city's draft budget.

Total municipal revenue is planned at EUR 1.47 billion, which is EUR 50 million more than in the 2024 budget. Last November, the Riga City Council adopted amendments to the budget, projecting revenue in the 2024 municipal budget at EUR 1.42 billion.

Expenditure in the amended budget for 2024 was planned at EUR 1.584 billion, while in 2025, expenditure is expected to increase to EUR 1.694 billion, which would be EUR 110 million more than last year.

While last year's budget expenditure was expected to exceed revenue by around EUR 164 million, in 2025 the municipality's budget expenditure is expected to exceed revenue by more than EUR 200 million.

Uldis Rakstins, Director of the Riga City Council's Finance Department, told LETA that the bulk of the spending growth comes from two major infrastructure projects - the fourth phase of the Dienvidu (Southern) Bridge and the Kundzinsala overpass. These projects have been agreed with the government and will be financed with loans.

In November 2024, the Riga City Council decided to take out a EUR 92.6 million loan for the fourth-stage construction of Dienvidu (Southern) Bridge. The city council plans to take the loan for a period of 30 years. Jana Cakstes Gatve (the Southern Bridge, Phase 4) will be built with co-financing from the EU Cohesion Fund. The total costs of the project are estimated at EUR 122,732,479.

The construction of the overpass to Kundzinsala is scheduled for completion by 2026. The total cost of the project is an estimated EUR 82.6 million, of which a loan could amount to just under EUR 60 million.

This year's draft budget is scheduled to be discussed at a meeting of the Riga City Council's Finance and Administration Committee on Thursday, January 16, and at a meeting of the Riga City Council the following week.