Bauska Municipality Economy: Councillor and Financier Urge More Investment in Education and Business

Bauska municipality should invest more in education and in promoting business to boost its economic growth. That was the conclusion of municipal councillor Mārtiņš Cimermanis and financier Uldis Maniks, who discussed tax figures published by the Ministry of Economics in the studio of the local newspaper Bauskas Dzīve. The data, based on information from the State Revenue Service and the Central Statistical Bureau, show that in the first half of this year companies in Iecava parish paid the largest share of net taxes in the Bauska municipality.

The role of agriculture

Cimermanis noted that in Iecava more than 70% of taxes are paid by the two largest companies, both in agriculture. The municipality therefore depends on prices in the global market. In Rundāle and Vecumnieki, agriculture and forestry dominate, so there were no active tax payments there in the first half of the year. Maniks urged checking the methodology of the data, saying the difference per employee seems too large.

Workforce and education

Maniks stressed that companies are hindered most by a shortage of qualified workers. He cited a study in which 22% of secondary school students link their future with the municipality, while 45% do not. In his view, the budget allocates 60 thousand euros each to employment and to STEM (science and technology fields), which is too little. Cimermanis called for developing vocational education, for example at Saulaine technical school, and proposed opening a drone class. Maniks sees agribusiness as the municipality's specialisation.

Municipal finances

Personal income tax makes up 40–45% of the municipal budget. According to Maniks, its average growth is 12% a year, while the construction price index rises by 8.5% a year on average, so real growth is small. Maniks criticised the municipality's cautious strategy. Cimermanis believes investments should be judged by their effect on business and education.

View on the national level

Cimermanis said the government recently approved a growth plan for the agricultural sector. In his view, deeper processing of timber and food could double revenues and raise GDP by 2%. He said only 27% of the food eaten in Latvia is produced locally.