RIGA, Feb 9 (LETA) - This year, EUR 60.1 million has been made available to local governments in earmarked subsidies for street construction and maintenance, which is the same amount as in 2025, the Transport Ministry informed LETA.

This year, the Transport Ministry will also allocate an additional earmarked subsidy of EUR 330,000 to municipalities for several sections of local roads that were taken over from the state by municipalities by October 1 last year.

According to the ministry, out of the EUR 60.1 million allocated in the earmarked subsidies to local governments in 2025, EUR 53.7 million was spent.

Of the funding used in 2025, 65 percent went to road and street maintenance and 35 percent to road and street construction. EUR 5.5 million was invested in improving traffic safety, with the municipality of Kraslava investing the most for the purpose, EUR 1.1 million.

The ministry explains that the funding is allocated to municipalities by applying a coefficient calculated according to the total area of bridges and roadways and the total length of roads, as well as in proportion to the number of vehicles registered in each municipality's territory. Last year, largest funding of EUR 8.4 million went to Riga, while 22 municipalities received subsidies of more than EUR 1 million.

Talivaldis Vectirans, director of the Transport Ministry's Road Transport Department, points out that the earmarked subsidies give municipalities the opportunity to invest state funds directly into the needs of their citizens, as the municipalities themselves decide on projects to be implemented.

"In the future, municipalities will also have a greater role in deciding on road reconstruction, including to support business development in their territories. The Road Strategy approved by the government provides for greater flexibility in the context of regional economic development, as local and regional authorities are given a greater role in construction of regional and local roads," he explains.

Earmarked subsidies are allocated annually from the state budget to municipalities for maintenance and development of road and street infrastructure, bridges, and projects to improve traffic safety.