RIGA, Aug 16 (LETA) - The Latvian Association of Local Governments (LPS) has agreed with the Welfare Ministry on earmarking budget funding for the guaranteed minimum income (GMI) and housing benefit, LETA learned from LPS.

Increase of the poor people in municipalities means that the local governments have to pay more in different social benefits that seriously affects municipal budgets.

Therefore, a plan has been coordinated with the Welfare Ministry provides for improvement of the benefits system in 2022-2024, and LPS called on the ministry to earmarke budget funding for GMI and housing benefits.

Local governments pay basic social benefits and different other social benefits for different needs of social groups.

In 2021, significant changes were introduced in the social assistance system, increasing the amount of money to be paid in social benefits. Also, residents' social situation has changed as a result of the pandemic.

Besides, this year, not only municipal budgets have been cut significantly, but also the revenue is lower than planned, therefore local governments need additional funding for payment of basic social benefits.