10 October Prime Minister Arturs Krišjānis Kariņš and Gints Kaminskis, Chairman of the Latvian Association of Local and Regional Governments (LALRG), have signed the Agreement and disagreement protocol 2020 (Protocol) between LALRG and Cabinet of Ministers.
The negotiation process between the Cabinet of Ministers and the LALRG and the signing of the Protocol are the procedures by which the Cabinet of Ministers co-ordinates with local governments issues that affect the interests of local governments.
“Many of the issues essential to long-term development of the local governments the agreement have not been reached in the Protocol2020. The leaders of local governments have been referring to this for a long time, giving concrete examples; many development projects will now have to be left aside because of a lack of money in the budget. Now the Saeima must make the decision, so we are calling for compliance with the medium-term budget framework law and for local governments to increase their revenue in proportion to the growth of the general government budget,” Gints Kaminskis – Chairman of the LALRG stressed.
The 2020 Protocol includes the following items in the agreement section:
- personal income tax revenue projection for 2020 and 100% government guarantees to meet the projection;
- the possibility of using the earmarked grant for the payment of teachers' fees to pay the redundancy grant;
- developing the 'money follows the pupil' model;
- a request for an extension of the transitional period to 2023 for educational premises;
- the sequence of the implementation plan to improve the minimum income support system;
- the level of guaranteed minimum income in 2020 and other agreements.
While in the disagreement section:
- the proportion of municipal tax revenue of 19.6% in the general government consolidated budget;
- on the redistribution of gambling tax and natural resource tax revenue from the municipal budget and the state budget;
- the conditions for borrowing by municipalities;
- funding for municipal roads and streets;
- on the national regional and local road improvement program;
- on free lunch for pupils in grades from 1st to 4th.
- financing of the salary of all pre-school teachers from the state budget.