Social Dem City Faction Concerned about Tallinn's Public Debt
Spring comes to Tallinn ( Photo: Postimees/Scanpix )
Responding to a question from the Social Democrats, Tallinn's mayor Edgar Savisaar said that Tallinn has 400 million euros in long-term obligations compared to its 475 million euro budget.
Of these obligations, 235.1 million euros are on the balance sheet, and it also has 163.4 million euros of long-term obligations under leases signed with private partners. That effectively brings the debt burden to 84 percent, said the Social Democrats in a March 21 statement.
On the country level, that is about at the level of France and Portugal, while Estonia's public debt is around 6 percent.
The Social Democrats are pushing the issue of financial accountability in the city of Tallinn, saying the city has spent too much effort on populist campaigns.
Jaak Juske, chairman of the Social Democratic faction in Tallinn City Council, said city-owned companies had taken 41.9 million euros of debt, which he said was also a risk.
"Tallinn's financial status is more than critical and extreme caution must be exercised taking new loans," he said. "The city's goal must be to develop all of the fields in the city government's area of administration equally. Tallinn can simply not afford the expensive initiatives that are currently on the city government's table."