A conceptual agreement has been reached that each resident who suffered damages in the storm at the end of July will be able to receive up to EUR 3,000 in aid, Minister of Smart Administration and Regional Development, Inga Berzina (New Unity), said in an interview with commercial TV3 television.
Regarding municipalities, the existing procedure of state assistance for covering losses will remain, she explained. They can claim 70 percent compensation from contingency funds. If the total losses exceed 2 percent of the municipality’s annual expenditure, it will be eligible for more support, she explained.
Asked about Jurmala’s wish to be exempted from paying into the Local Government Harmonization Fund to cover storm damage, the minister stressed that there was an agreement in principle not to change the nature of the fund at the moment.
At the same time, in the context of the budget, there will have to be a discussion on the level of state co-financing in the overall financial harmonization system. More state funding would be beneficial for all local governments, Berzina said. “Of course, it will be a tough negotiation on the budget as a whole, but we will look in this direction,” she said.
As reported, Latvia was hit by storms on July 28-29, which caused widespread damage.
Jurmala’s municipality could cover the cost of the July storm damage on its own if the government allows it not to contribute around EUR 10.5 million to the municipal harmonization fund next year, Jurmala Mayor Rita Sproge (Greens/Farmers) said earlier.
Source: BNS
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