RIGA, Sept 28 (LETA) - Around 1,200 residents of Latvia's border town of Valka have declared their place of residence in Estonia, Valka mayor Armands Krauklis (Vidzeme Party) said in an interview with Latvian Radio. 

According to the Valka mayor's estimates, this trend causes a budget loss of EUR 400,000-500,000, because the municipality still spends money on these people but does not receive any tax income from them. 

Residents of Valka tend to declare their place of residence on the other side of the border because Estonia pays larger child benefits and offers better healthcare, Krauklis said, adding that these people might declare their place of residence in Latvia again if these welfare indicators levelled out.