Analytics, Budget, Financial Services, Latvia, Legislation

The minister said that earlier it had been agreed already that additional EUR 200 million would be earmarked for healthcare and EUR 25 million for road maintenance.

Another EUR 120 million will be spent on other government-supported measures in 2018, EUR 101 million in 2019 and EUR 266 million in 2020, including EUR 144 million for the health sector.

Representatives of the Finance Ministry told LETA that extra EUR 28.2 million have been earmarked in the 2018 for demographic incentives, and EUR 8.4 million for social programs, including government support to foster families and custodians.

Another EUR 11.7 million have been earmarked for boosting domestic security, including the strengthening of Latvia's eastern border, and EUR 4.2 million to the government support program for families with children buying their first housing.

EUR 3.7 million have been allocated for raising the salaries of teaching staff at Latvia's institutions of higher education, and EUR 5.7 million for cutting value added tax (VAT) on fruit and vegetables common in Latvia.

As reported, the government has widened the 2018 fiscal space to EUR 117 million from EUR 81 million by postponing construction of a new prison in Liepaja.

During an extraordinary meeting on September 8 the Cabinet of Ministers approved a number of priorities put forward by different ministries concerning the 2018 state budget, including raising salaries for university and college lecturers, reducing value added tax on vegetables, fruit and berries common in Latvia, and increasing benefits for large families.