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International Internet Magazine. Baltic States news & analytics Monday, 26.10.2020, 12:40

Latvia's support for alleviating Covid-19 crisis will be at around EUR 1.2 bln

BC, Riga, 16.10.2020.Print version
The fiscal impact of the state aid measures introduced during the Covid-19 crisis on the 2020 budget will be EUR 1.2 billion or 4.3% of gross domestic product (GDP), writes LETA, according to the monitoring report prepared by the Fiscal Discipline Council for the 2021-2023 medium term budget framework.

The report also notes that the impact of the measures on the economy as a whole will be greater, as some of the measures, such as guarantees and the redistribution of European Union (EU) funds, will not have an impact on the national budget.

"Currently, only a part of the measures have actually been launched and are working. According to the Ministry of Finance, the impact of support measures on the state budget in mid-September is about EUR 700 million. The measures are timed to address liquidity, workers and the most vulnerable for social protection, business and sectoral support, and capacity building in healthcare and other sectors," the report noted.

In the Council's view, the Latvian government responded promptly to the crisis caused by Covid-19 and established economic stabilization and support mechanisms for the population, in line with the recommendations of international organizations.

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