Analytics, Budget, Financial Services, GDP, Latvia, Statistics
International Internet Magazine. Baltic States news & analytics
Thursday, 03.07.2025, 04:41
In 2018, general government budget deficit in Latvia amounted to 295.4 mln euros

General
government sector includes all central and local government budgetary
institutions, the social security fund and the central and local
government-financed and controlled enterprises selected in compliance with ESA
2010 criteria on government sector formation.
General
Government Budget Deficit or Surplus and Debt
|
2015 |
2016 |
2017 |
2018 |
Budget
deficit (-) / Surplus (+), million EUR |
||||
General
government |
-331.4 |
16.2 |
-155.7 |
-295.4 |
Central
government |
-447.4 |
-15.4 |
-196.8 |
-319.6 |
Local
governments |
79.4 |
56.2 |
-49.4 |
-214.2 |
Social
security fund |
36.4 |
-24.6 |
90.5 |
238.4 |
General
government consolidated gross debt at nominal value at end of year,
million EUR |
8 953.3 |
10 091.6 |
10 806.8 |
10 608.0 |
As %
of GDP |
||||
General
government budget deficit (-) |
-1.4 |
0.1 |
-0.6 |
-1.0 |
General
government consolidated gross debt at nominal value at the end of year |
36.8 |
40.3 |
40.0 |
35.9 |
As compared
to operating cash flow data of the Treasury where consolidated
budget deficit in 2018 was EUR 215.1 mln, budget deficit calculated
by the CSB in accordance with the methodological requirements of European
System of Accounts 2010 is EUR 80.3 mln or 0.3 percentage points
of GDP less.
Most
significant methodological adjustments with positive effect on the general
government budget:
- adjustments in claims against
debtors (data of the Treasury) – by EUR 156.6 mln or 0.5% of
GDP;
- adjustments of expenditure on
construction of the Southern Bridge (data of Riga City Council) – by
EUR 26.8 mln or 0.1% of GDP;
- adjustments for exclusion of
transactions of derived financial instruments (data of the Treasury) – by
EUR 21.2 mln or 0.1% of GDP;
- adjustments for balancing
foreign financial aid flow (data of institutions involved in
administration of foreign funds) – by EUR 19.5 mln or 0.1% of
GDP;
- balance of the Deposit
Guarantee Fund (data of the Financial and Capital Market Commission) – by
EUR 18.5 mln or 0.1% of GDP;
- tax adjustments by using the
time adjustment method (data of the Ministry of Finance) – by
EUR 8 mln or 0.03% of GDP.
At the same
time, there have also been adjustments with negative effect on the general
government budget:
- adjustments to obligations
against creditors (data of the Treasury) – by EUR 130.2 mln or
0.4% of GDP;
- adjustments to revenues from
auctioning of emission allowances granted to Latvia (data of the Treasury)
– by EUR 81 mln or 0.3% of GDP;
- balance of corporate
enterprises of central and local governments reclassified to general
government (CSB data) – by EUR 50.7 mln or 0.2% of GDP;
- adjustment of securities
premium in the issue year to ensure recognition of premiums in revenue in
the following years until the redemption of securities (data of the
Treasury) – by EUR 44.2 mln or 0.1% of GDP;
- adjustments for future payments
of the 2nd pillar pension scheme funds (data of the State Social Insurance
Agency) – by EUR 22.9 mln or 0.1% of GDP;
- adjustments for government
investments in state and local government enterprises (data of the
Treasury) – by EUR 5.5 mln or 0.02% of GDP.

As compared
to 2017, the general government consolidated gross debt in 2018 reduced by
EUR 0.2 bn or 1.8% and comprised EUR 10.6 bn.
Calculations of the April 2019 Notification are based on the data of the Ministry of Finance, the Treasury, State Social Insurance Agency, CSB, Riga City Council, Financial and Capital Market Commission, Central Finance and Contracting Agency and institutions involved in the administration of foreign funds.