Tallinn municipal government adopts 2022 budget | Politics
City Council President Jevgeni Ossinovski (SDE) said that next year’s city budget will lead to several positive changes, the priority being: âConvenient and safe urban environment, while the budget also pays attention to setting implementing the green transition and the climate as well as improving the learning environment in schools and kindergartens. “
âThe focus is on the renovation of kindergartens with a total of nine kindergartens that will be renovated simultaneously next year, while design work will start or continue in 15 more kindergartens. whose party came to power with the Center as a junior coalition partner in Tallinn after the October local elections, continued.
Additional resources to achieve green transition and climate goals, including the installation of solar panels on public buildings, new buses and trams, and support for housing associations in implementing eco-friendly solutions. environment were also on the agenda, Ossinovski said.
Breakdown of the 2022 Tallinn city budget (source: BNS):
- The total budget volume is 1.032 billion euros, with the planned reserve volume 868.4 million euros.
- Tax revenue represents 68% of the total, while personal income tax is the main source of revenue (556 million euros).
- The property tax is projected to 25.4 M â¬ in 2022 (unchanged over 2021).
- Revenue from the sale of goods and services by city institutions: 90.1 million euros (9.3% more than in the 2021 revised budget).
- Support from the State and other institutions: â¬ 1,49.9 million.
- External funding is expected to increase by â¬ 14.4 million to â¬ 23.9 million, with the Tallinn hospital project being one of the main estimates.
- Expenses have been budgeted at 746.7 million euros.
- Of the operating expenditure, 39.1%, or a total of 292 million euros, will be devoted to education.
- Urban transport costs will represent 15.2%, or 113.3 million euros in total.
- Social protection and health expenditure will represent 11.3% of total expenditure, for a total of 84.3 million euros.
- The investments in health will increase to 14.4 million euros, which includes the costs related to the design of the Tallinn hospital.
- The biggest investment in healthcare next year will be 13.5 million euros for the preparations for the construction of the Tallinn hospital.
- The design phase of the hospital has started this year and the main project should be completed in early 2024. 2.2 million euros of investment are planned from the city budget and 11.3 million euros with EU support.
- In addition, the city will contribute 1.2 million euros to cover the running costs of the Tallinn hospital.
- Next year’s budget provides for an increase in the pension supplement to â¬ 150 per year.
- In order to finance its investments, the city plans to take out a loan of up to 90 million euros in 2022, which would bring the city’s estimated net debt to 32.3% of operating income by the end. 2022 – within 80% allowed by law.
- 19.2 million euros are planned for the loan service next year, of which 16.2 million euros are intended for the repayment of the principal of the loans and bonds of the city and 3 million for interest costs.
- In addition, all students in primary, upper secondary and vocational education will receive a scholarship of â¬ 50 at the start of the school year.
- The city’s operating profit is forecast at 84.1 million euros in 2022, which meets the requirement of the law on the financial management of local authorities that the expected operating profit must be zero or positive.
- 269 ââmillion euros are planned for investments in 2022, twice the rate of 2021.
- A quarter of this amount is made up of investments in roads and streets, a total of 67.7 million euros is planned for the rehabilitation and reconstruction of roads and streets.
- Investments in education represent 22.3% of all investments, for a total of 59.9 million euros.
- 15.9% of the total volume of investments will go to urban transport, rising to 42.8 million euros, which will be devoted to the reorganization of the public transport network and the purchase of 150 new buses and trams.
- In total, investments in roads and streets, education and urban transport represent almost two-thirds of all investments planned for the year.
- Investments in the field of culture represent 28.9 million euros of the budget.
- In the area of ââeducation, both operating expenditure and investment will increase in the 2022 budget compared to this year.
- Special attention will be paid to improving children’s exercise habits and developing a modern learning environment, and a number of kindergartens, schools and recreation schools will be renovated. â¬ 59.9 million are planned for investments in educational establishments, including â¬ 16.3 million for schools and â¬ 43.6 million for kindergartens.
- As an important strategic investment in entrepreneurship, the city will contribute 500,000 to the Tallinn Business Incubator to support the creation of a new creative and circular economic hub in the city center, which would help and advise start-up and operating businesses.
- A total of â¬ 29.4 million is foreseen for operational expenditure in the field of culture, which is â¬ 2.4 million more than in the revised budget for 2021.
- Particular attention is paid to the promotion of both Estonian national culture and the cultures of national minorities, to the support of important events in the cultural life of Tallinn and to the development of the city’s cultural institutions.
- The total volume of investments in the field of culture in 2022 is expected at 28.9 million euros, almost three times more than this year. The lion’s share – 13.4 million euros – is linked to the construction of the Tallinn Municipal Theater.
Isamaa opposes budget that says too little about social assistance and education in Estonian
The opposition chamber group of Isamaa city council in Tallinn criticized the budget for elements relating to the provision of education in Estonian, the fight against the coronavirus, the care families and the elderly; and street maintenance.
Riigikogu councilor and MP Riina Solman said: âThe government has not yet made progress in the transition to education in Estonian. Isamaa has submitted a proposal to the Tallinn City Council to implement a plan for the protection of the Estonian language in Tallinn and in order to launch it additional resources must be allocated â,
An additional investment of EUR 1 million in education is needed, as well as an additional allocation of EUR 4 million is needed to improve school ventilation systems, Isamaa says.
Isamaa also proposed that the city take over the maintenance of the sidewalks during the winter periods.
âUnless the 2022 budget includes investments in the well-being of residents, we cannot support it,â Solman added.
“An additional investment of 10 million would ensure that the streets of Tallinn are in a better condition during the winter period,” she continued, adding that the city taking over the effort would free homeowners from an unfair obligation to ” maintain the sidewalks belonging to the city.
The coalition opted for increasing the number of city officials at the expense of social assistance, Solman continued.
The ruling Center / SDE coalition rejected Isamaa’s proposals.
Isamaa ran with a slogan “Clean the Square” (“Plats puhtaks”) during the October election campaign, which saw Urmas Reinsalu running for mayor.