RIGA, Oct 11 (LETA) - Even though the Latvian Association of Local Governments (LPS) and the Cabinet of Ministers have agreed on the 2022 budget, the association has not managed to convince the government on changing the share of personal income tax received by local governments.

At present, 75 percent of personal income tax revenue go to local governments and 25 percent in the general government budget.

LPS chairman Gints Kamniskis said that local governments wished for gradual change of this proportion in order to reach the previous level of 80 percent. 

Kaminskis said that overall negotiations were positive and focused on problem solving.

As reported, local governments are entitled to additional funding for target subsidies, harmonization of municipal budgets, in line with the agreement between the Cabinet and LPS on 2022 budget and medium term budget framework for 2022-2024.