Mayor of Tallinn calls for increase in local government funding
Mayor of Tallinn Mihhail Kõlvart (Center) has asked the government to increase the amount of income tax transferred to local governments to deal with rapidly rising prices.
Kõlvart, who is head of the Association of Estonian Cities and Rural Municipalities, wants the rate raised to 12.19 percent from 11.96 percent during next year's budget negotiations.
The spring economic forecast says local government expenditures will grow significantly faster than revenues due to rapid inflation, rising wages and high energy prices, he wrote to Minister of Public Administration Jaak Aab (Center).
Kõlvart said raising the rate will partly cover local government deficits, finance hobby education and the rising salaries of kindergarten teachers.
Additionally, money is also needed to cover costs relating to refugees. He said a crisis reserve fund also needs to be established for local governments.
Kõlvart requested funding for maintaining local roads be raised from €29.3 million to €45.5 million.
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Editor: Helen Wright