Analytics, Budget, Financial Services, GDP, Latvia, Legislation

April 2014 general government budget deficit and debt notification: main indicators

Compared to provisional data of the Treasury, which show that in 2013 general government consolidated budget deficit comprised EUR 128.4 mln or 0.6% of the GDP, budget deficit, calculated in line with the methodological requirements of European System of Accounts ESA’95, is larger by EUR 95.4 mln or 0.4% of the GDP.

Most significant adjustments with negative effect on the general government budget (increase of deficit) are as follows:

• government investment in financial institutions and enterprises (data of the Treasury) – adjustment by EUR 62.7 mln or 0.3% of the GDP;
• balance of enterprises controlled and financed by central and local governments reclassified to general government (CSB data) – adjustment by EUR 46.7 mln or 0.2% of the GDP;
• tax adjustment using time adjustment method (information source – calculation of the Ministry of Finance) – by EUR 21.4 mln or 0.1% of the GDP;
• adjustment on income from sale of sate-owned greenhouse gas emissions (data of the Treasury) – by EUR 10.8 mln or 0.05% of the GDP.

At the same time adjustment with positive effect to the general government budget was introduced (deficit reduction):

• adjustments in claims against debtors (data of the Treasury) – by EUR 40.0 mln or 0.2% of the GDP;
• adjustment on income from privatisation (data of the Ministry of Economy and the Treasury) – by EUR 9.6 mln or 0.04% of the GDP.

General government budget deficit by subsector in 2010 – 2013, as % of GDP

Data source: Central Statistical Bureau of Latvia

In the calculations of the April 2014 notification data from the Ministry of Finance, Treasury, Ministry of Economics, CSB and Riga City Council are used.

On April 23 the European Union Statistical Office Eurostat will release information on the results of the April 2014 notification in all EU member states.