How to Spend 1.7 Billion Euros: The Mayor of Riga Blamed the People for 'Soviet Thinking'

Politics
BB.LV
Publiation data: 23.01.2026 15:00
Сердце Вецриги в будний день. Ищу человека! Фото автора.

The longest working days of the municipality – the approval of the main financial document. Describing everything is simply impossible. This is a novel! But, the fateful debates on the 2026 budget were opened personally by the mayor of the capital.

According to Viesturs Kleinbergs ("Progressives"), work on it began last summer, but "unfortunately, at the beginning of the year, information came that the forecasts for personal income tax were too optimistic...".

Tightening Belts

The chairman immediately stated that he did not want to talk about megaprojects or reindustrialization, but – he speaks as a father of three children.

– Every sector has tightened its belt, – admitted V. Kleinbergs.

In the field of communications, he proposed a priority – to reconstruct the Cable Bridge by 2028. The Zemgale Bridge is almost ready, and the bridge to Kundzinšala will remove transit from the Center while preserving the historic cobblestone. But the primary issue remains safety:

– I do not want to see a single child or elderly person being hit on the streets of Riga.

The program for establishing crossings and street lighting will begin in 2026, and then it will operate at double speed. A pilot project has started in Imanta. The municipal police are conducting increased patrols in marked cars so that drivers reduce speed in the presence of law enforcement.

Public transport routes are being optimized – they are being extended to Ropaži and Mārupe in cooperation with nearby municipalities.

A Change in Thinking is Required

In the social sphere, V. Kleinbergs emphasized additional funding for the Orphan Court; social assistance. 1,200 children have completed courses on recognizing the signs of a stroke to call an ambulance in time. As for Latvian language education – the capital "has never done so much". The mayor also promised various public-private partnerships, the organization of clubs, etc. Apparently, to commemorate all these initiatives, tables for novus and table tennis were installed in the hall of the Riga City Council!

Attracting investors and professionals will be aided by the construction of housing for young specialists. The mayor also mentioned the development of tourism – in one phrase, without specifics. He only spoke unfavorably about the "administrative tricks" that some capitals in the Baltic states use...

Viesturs Kleinbergs included plans for the prospects of water transport connecting the banks of the Daugava. He also reminded about the territory of the Riga Free Port, which occupies 11% of the capital's area and is underutilized. "We need to change our thinking," – the mayor urged.

Restaurants as an Indicator of the City's Economy

Your author cited as an example the 5.5-year work of the "coalition of change" that just recently announced the closure of a famous restaurant on Smilšu Street – Latvian owners, million capital, and now taxes will be lost, and dozens of people will become unemployed. In response, Mr. Kleinbergs cited the example of the famous place Vincents, which shone with haute cuisine, but is now gone. And nothing. Meanwhile, trendy, hipster establishments are developing in Agenskalns, on Tallinas Street...

I had to remind Mr. Kleinbergs that the aforementioned enterprise was owned by Mr. Ritiņš, who passed away during COVID – and today’s entrepreneurs, thank God, are alive and well. And it is unlikely that tourists from the same ferries will venture so deep into Riga, along the routes recommended by the mayor. Overall, it came across as unconvincing in terms of business support.

Another deputy raised a question regarding queues at social centers. The mayor's response: too many people in the capital register at several institutions at once. Such a "relic of Soviet thinking"! One way or another, the municipality will increase the cost of the social services voucher from July 1 – from 840 to 1,100 euros.

"Riga's Marketing Budget is Twice That of Tallinn"

The expenses amount to 6 million euros! The mayor objected – when he arrived in Tallinn, he learned that local planning is required for every construction project, which investors do not like.

– They are stuck in the past much more, – criticized the mayor of Riga his neighbors.

But not everything is so bad in Tallinn. The opposition pointed out that Riga could introduce free public transport – like its neighbors (the proposals were estimated at 35.33 million euros).

To this, V. Kleinbergs countered that there has been no significant reduction in car traffic in Tallinn. By the way, regarding traffic in the capital, he vowed – there will be no charge for entering the city for Riga residents!

In general, the mayor expects travelers from Poland, and especially – medical tourism. Apparently, Riga has already solved all the health problems of its own population...

What Nourishes the Homeland

Carefully studying the revenue part of the 2026 budget, one immediately notices that the income tax, which the mayor spoke about, accounts for about 2/3 of revenues – namely 934 million euros. Following it is the property tax amounting to 118.7 million. A significant gap follows with the natural resources tax – 2.2 million, and the gambling tax – only 730 thousand euros.

The municipality also intends to collect 30.3 million euros in non-tax revenues. These include: income from business activities and property of Riga's capital companies – 8.7 million euros; municipal fees – 6.4 million euros; monetary fines – 5.5 million euros; other non-tax revenues – 9.7 million euros. The last item includes the rental and sale of municipal property.

This year, our budget is supplemented by 63 million euros – funds from European Union projects. So it turns out – money from Brussels provides our capital with only about 3.7%!

The loans that Riga will take in 2026 amount to 129.1 million euros. And for interest payments, they plan to allocate – 62 million euros.

The Example of Jūrmala is Eye-Opening

During the budget hearings, it was also pointed out to V. Kleinbergs that nearby Jūrmala has far surpassed the capital in the amounts paid for newborns. To which the mayor responded in the spirit of – happiness is not in money.

– Benefits, of course, are easy to sell to voters, – the mayor said dismissively, who himself is not averse to catering to the electorate.

Regarding food in schools (4.5 million euros to provide students in grades 1-12), V. Kleinbergs pointed out that not all portions are eaten, and "huge biological waste is generated". As for the menu, calories:

– There is no need to look with a calculator at what these children eat.

Nevertheless, the head of the municipality admitted that for some families, school is the only place where children can eat properly.

Overall, V. Kleinbergs intends to stick to the course of "optimization", under which the number of educational institutions in Riga decreases every year. But the main thing is that the educational process is – of high quality.

– And we should not support schools with exhausted infrastructure, where teachers do not want to work.

IN SUMMARY

After 10 hours of debate late Wednesday evening, Riga adopted a budget with an almost 13% deficit: with revenues of 1,508,011,846 euros, expenses are set at 1,702,191,271 euros.

Niks Kabanovs
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