Back to list Print 9. Dec. 2009

"Rīgas satiksme": with a considerable budget deficit at the beginning of the new year, the public transport tariff could be 50 santims.

Being fully aware of the municipal budget capacities, "Rīgas satiksme" has revised its 2010 budget draft to ensure the affordability of the public transport service to Riga residents. In this connection, today the company took the decision to ask a tariff of 50 santims to be set for one trip, while keeping the existing categories of discounts and increasing the total bulk of discounts for school pupils, students, pensioners and other categories of Riga residents. For example, the price of one trip for pensioners will be kept at 20 santims, like before.

Taking into account the priorities set by local government, "Rīgas satiksme" will not propose to raise the ticket prices to which discounts set by the municipality already apply. According to trip registration data, every day 60-70 % of all registrations on the average are made with discount tickets.

It is scheduled that revising the tariff could slightly increase the company’s revenues,  and "Rīgas satiksme" could start the next year with a budget deficit of LVL 6 million, which involves a certain risk.

As reported before, the lack of expected state funding for public transport service in Riga in the next year makes drawing the next year budget much more difficult. If preserved at least at this year level, the state subsidy would be LVL 6.7 million.

With public transport expenditures totalling LVL 97.1 million lats, it is impossible to find more than 12 million lats by optimizing costs. In addition to the optimisation already made this year, we have found a possibility to cut our expenditures by another 5 million lats in 2010, having exhausted all our resources.

The expenditures are planned so as to cover, firstly, the costs of the service, and, secondly, loan obligations and compulsory payments. Other expenditures are planned with economic austerity. The only budget item where costs have grown are   repayments on loans – up to LVL 18 million. Production costs have been cut in proportion to the amount of work. Expenditures on salaries have been significantly cut – by making redundant a staff of 1000 and cutting salaries by more than 20 %


In 2009 the company’s losses increased due to the rise in the VAT rate from 5 to 10 %. Despite the fact that in this case the law allows prices to be increased, the company had to compensate a loss of LVL 2.2 million at its own expense. Also in 2009 several decisions were taken to increase the bulk of discounts, which the company fulfilled by optimising its costs. pildi uzņēmums veicis uz izdevumu optimizācijas rēķina.

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