Finance ministry: All €70-million local government COVID-19 support used up

Ministry of Finance.
Ministry of Finance. Source: Siim Lõvi/ERR

Local government coronavirus support issued in spring has been used up, the finance ministry reports.

Minister of Public Administration Anneli Ott (Center) said the full €70 million, issued in response to the first coronavirus wave via a supplementary budget in spring, has been allocated by city and rural municipalities.

Ott said in a press release Monday that: "This support was intended to help municipalities mitigate the effects of the coronavirus, revitalize the economy, stimulate local entrepreneurship and ensure the sustainable development of our cities and municipalities."

Conditions saw minimum support amounts of €20,000 for projects to be decided by each municipality in terms of size and scope – ultimately these totaled 405 – as well as a requirement that these were for destinations not planned for in the 2020 state budget.

Potential uses were as diverse as building, demolition or repair work, communications installation and the purchase of new furniture, the ministry's head of municipal financial management Sulev Liivik told BNS.

The procedure saw funds released on conclusion of a contract with a third party or the submission of a purchase invoice, which should be completed by year end in order to get the funds into the economic cycle as soon as possible, BNS reports.

Meanwhile, Sulev Liivik noted that the completion of the support process should not mean a cut in investments in 2021.

He said: "The coronavirus crisis is far from over and the economy needs to be stimulated; it is namely investments made in difficult circumstances that bring many benefits – it gives people jobs and provides local governments with tax revenue."


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Editor: Andrew Whyte

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