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The summer is in full swing, as well as road repair in Latvia. When we are confronted with daily congestion caused by repairs, it seems to us that there are many, but when we badyze and compare the quality of the road, we find that there is little repair . Similar feelings come when you come back from shopping to realize that you have spent a lot of money, but there is really nothing in the shopping bag.
About 35.8 million more than last year, and yet – a little
2018. On the national road network, work planned on 152 objects, of which 26 will be financed by funds from the European Union, and 126 – on the state budget. In total, different types of work are planned at 1200 kilometers. In 2018, 183 million euros will be available on the state budget for the public road network, but 124 million euros on funds from the European Union, according to Latvijas Valsts ceļi . In total, 307 million euros will be available for repair and maintenance of national highways this year, or 35.8 million more than last year. However, experts estimate that the required amount is at least eight times higher.
Important works are being carried out and planned on the Jekabpils side, on the Lithuanian border, Sigulda, Vecpiebalga, Ligatne, Skrivera, Labrags, Valmiera, Cesis and many other places. If samples are taken from a map of Latvia, where existing and planned repairs are noted, they are smarter than the manikin's stomach. This time, with the addition of national and European funds, funds have been found, but we must take into account that a number of works will not be completed this year, but will go to plans for the future. Next year and they will have to find funds.
Twice, then unfortunately, we will not use the same money twice. Therefore, the question arises: what will we do next year, and even more so in 2020, when EU funding will no longer be so generous?
Will the excise tip the balance?
Some experts believe that EU funding only amounts to $ 26 million, compared with $ 126 million for the country, so it's not intrusive to think – the two funds will be found. However, to fill this gap, which could be even greater in the years to come, we will not seek education, medicine or other sectors, it is already time to find solutions. rational and thoughtful. Amendments to the Excise Tax Act were also included, providing for the period 2018-2020. The tax rate for petroleum products was raised in January of this year, and it is planned to raise it on January 1, 2020, with alcoholic beverages scheduled for March 1 of each year; The rate for cigarettes was increased on July 1 and will be repeated in subsequent years. The last two aspects are the subject of another discussion, but it should be noted that the increase in the rate of petroleum products means the search for funds in the portfolios of the same driver and the merchants who deal the freight.
who drive, use fuel while paying more and better roads. But it must be understood that road conditions and fuel prices have a significant impact on companies in different sectors. If there is a significant increase in fuel prices that may result in significant additional costs for the logistics company, industry activity in this sector could decrease, which will affect industry sectors. Activity that outsource logistics. One domain affects others and the domino effect takes shape. In addition, the increase in excise duties is not a long-term solution.
Long-term planning should consider alternatives, such as the public-private partnership model. Following this principle, several projects have already been implemented and successfully implemented, for example, work on the implementation of the Kekava bypbad project. Given the situation close to the border, the opportunities offered by the cross-border partnership should be taken into account as much as possible. It is possible to find solutions, but this must be done with a long-term vision, so that the solution does not destroy the other industry, for that matter, that makes a profit.
The author is SIA " CPM Trading" Member of the Board of Directors
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