Tartu's 2025 budget reduced by 10 percent
Tartu's budget for next year will decrease by 10 percent compared to this year, totaling €290 million. The opposition argues that the city is living beyond its means, as its debt burden already accounts for nearly 62 percent of budget expenditures.
The city's expenditures for next year will total €291 million, which is €30 million less than this year's budget, including the supplementary budget. The biggest savings will come from operational expenses.
"Primarily, we will not incur the costs associated with the European Capital of Culture events, nor will there be a Song Festival next year. That alone accounts for €4 million. Additionally, all departments reviewed their core operating costs, and we managed to cut €7.2 million from the city's resources," Deputy Mayor Meelis Leidt (Isamaa) told "Aktuaalne kaamera."
The city government's salary fund will also be frozen next year, reducing personnel costs — currently around €120 million — by €156,000. All departments have contributed to reducing operational costs by approximately 10 percent, including the city management department.
"Thanks to our transition to LED lighting, we've cut electricity expenses for next year's budget. Similarly, we've renegotiated better terms with various service providers, such as for paid parking, leading to significantly reduced fees. We also managed to lower unit prices for street markings. In public transport, we anticipate additional savings next year. Altogether, these measures save around half a million euros," Deputy Mayor Raimond Tamm (Reform) outlined.
The city's investment budget for next year is €44 million. The largest investment will be the reconstruction of Sõpruse Bridge, with €5.2 million planned for 2025. Other key projects include the renovation of Tähtvere Kindergarten (€3.5 million) and the design of technical systems for the Siuru Cultural Center (€3.1 million).
However, these investments will increase Tartu's debt burden by €12.1 million next year.
Kristiina Tõnnisson, a member of the opposition party Eesti 200, criticized the rising debt as unreasonable.
"Although the city budget has decreased, we have become overly lenient about living on borrowed money, and this trend continues. Every year, we meet an overplanned budget by taking on more debt. If we compare two figures — the budget of approximately €300 million and the debt of €200 million — who among future generations will pay for this overspending?" Tõnnisson remarked.
Mayor Urmas Klaas (Reform) said: "This borrowing is solely for investments, and the net debt-to-budget ratio will be 62 percent, significantly lower than the legally allowed 75 percent threshold."
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Editor: Merili Nael, Helen Wright
Source: Aktuaalne kaamera