Analytics, Budget, EU – Baltic States, Financial Services, Latvia

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

Data on general government budget deficit and debt are recalculated to implement new requirements of the Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (ESA 2010). More detailed information changes in data can be found here.

Compared to data on cash flow indicated in the annual report of the Ministry of Finance where consolidated budget deficit was EUR 127.6 mln or 0.547% of GDP, as calculated by the CSB, budget deficit according to methodological requirements of ESA 2010 is EUR 72.0 mln or 0.31% of GDP larger.

According to methodological requirements of ESA 2010, adjustment was carried out to follow accrual principle in the calculations, financial transactions were excluded from balance of government sector, impact of EU funds was neutralized, data of companies reclassified to general government sectors were included, requirements of debtors and obligations of creditors were adjusted, as well as other adjustments were carried out.

General government budget deficit by subsectors in 2010-2013, % of GDP

Data from the Ministry of Finance, the Treasury, the CSB and Riga City Council are used in the calculations of notification of October 2014.

On October 21 the European Union Statistical Office Eurostat releases information on the results of the October 2014 notification in all EU member states.

¹ Accordingly requirements of the regulation (EC) No. 479/2009 general government budget deficit and debt notification is submitted to the European Commission twice a year – until April 1 and October 1. The results of the notification are used for assessing how the European Union (EU) member states observe the compliance of the respective economic indicators with the criteria established by the Maastricht Treaty, that is, the ratio of the planned and actual general government budget deficit to the gross domestic product (GDP) at current prices must not exceed 3.0% and the ratio of the government debt to the gross domestic product at current prices must not be higher than 60.0%.