Tallinn’s budget exceeds € 1 billion for the first time in history | New
“The total budget volume is over 1 billion euros for the first time in history, for a total of 1,032 million euros, an increase of 76.3 million euros compared to the budget of the ‘current year,’ said Tallinn Mayor Mihhail KÃµlvart (Center).
âAlthough this is a significant increase, especially in terms of investments, which have doubled compared to last year, we will continue our conservative policy in activities and financial choices. the coming year must be positive, which will allow us to keep crucial reserves, “added the mayor.
The city’s total expected income is 868.4 million euros, of which 64% is personal income tax, 20% earmarked grants and 10.4% will come from the sale of goods and services .
Operating expenses amount to 746.6 million euros, 69% of which will be covered by the revenue from the municipal treasury.
KÃµlvart said the city will maintain its conservative line on the loan burden. As Tallinn has not borrowed money this year, the city government plans to borrow 90 million euros next year. âBut we will also stay within budget with this loan, which means that the volumes will not increase,â he said, adding that the loan burden will be around 32-33%.
The mayor said the city will think long term and understand that there are major investments ahead for the city, such as the development of Tallinn Hospital and Linnahall. âTherefore, we want to have a municipal reserve as well as a loan reserve so that we can use it to develop larger projects,â KÃµlvart said.
The main source of income for the city is the income tax, the increase of which will allow the city to increase its spending. KÃµlvart said this is driven by wage growth and the intensive wage growth across the country has also put pressure on the city’s systems. “We have allocated 10.3 million euros next year to increase salaries,” said the mayor.
âSalary increases are planned for each sector, but we are not basing them on a general percentage. Salaries will increase according to market conditions so that our salaries are competitive with those in other sectors. the private sector, âKÃµlvart said.
Investments are another priority for the city, with a growth of 93% year on year, for a total of 269 million euros in 2022. âThe investments are intended to improve and develop the infrastructures of the city. We have a conceptual orientation, the green transition, but our approach is not ideological, but starts from the observation that our changes must improve the quality of life, whether it is about environmentally friendly public transport, from the strategy cycling, public lighting, the establishment of circular economy poles – everything is linked to the green transition plan, but also with the achievement of daily needs, âsaid the mayor, adding that 60 million euros of investment resources will go to green projects.
Follow ERR News on Facebook and Twitter and never miss an update!