Analytics, Budget, Latvia, Statistics, Taxation

In the seven months of 2016, the general government consolidated budget accumulated a surplus of EUR 207.6 mln, which was by EUR 76 mln larger than in the same period last year.

The surplus is the government consolidated budget consisted of a EUR 108.6 mln surplus accumulated by the local governments budget and a EUR 99 mln surplus in the central government budget.

The tax revenue target was beaten by 0.4%, or EUR 18.1 mln, as tax revenues grew by EUR 218.6 mln, or 5.4% year-on-year, mainly thanks to increased collections of taxes on labor, value added tax and excise duties, the ministry said.

Even though both tax and non-tax revenues in the Latvian budget exceeded the target for the first seven months of this year and grew against the same period a year ago, the Finance Ministry described the EUR 34 mln rise in budget revenue as moderate.

Revenues to the Latvian central government consolidated budget in 2016 are planned at EUR 7. 4 bln and expenditure at EUR 7. 7 bln, with a budget deficit at 1% of GDP. The Latvian GDP this year is planned at EUR 26.1 bln in current prices with the economic growth expected at slightly less than 3%.