Budget, Financial Services, Latvia, Legislation, Taxation

61 MPs voted for the budget, 34 were against. The Saeima plenary had continued for about eleven hours.

Compared to this year, budget revenue is expected to increase by EUR 148 million and spending by almost EUR 215 million next year, the Finance Ministry's Parliamentary Secretary Arvils Aseradens (Unity) told LETA.

During the Saeima meeting, a number of proposals submitted by parliament members were approved, worth over EUR 10 million overall. If all the proposals were supported, they would increase the 2016 budget spending by EUR 263 million in total.

Gross domestic product is projected at EUR 26.13 billion in 2016. The permissible total budget deficit has been set at 1% of gross domestic product. The maximum national debt level at the end of 2016 has been set at EUR 10.1 billion.

The total amount of budget loans may reach EUR 243,269,723 in 2016.

Saeima also approved raising salaries for the prime minister, government ministers, parliamentary secretaries, heads of Saeima groups and committees, as well as ombudsman next year.

Personal income tax will remain unchanged next year at 23%, while tax breaks for dependants will be raised from EUR 165 to EUR 175 next year.

Compulsory minimum social insurance contributions will be introduced in Latvia from 2017, while microenterprise tax for companies with annual turnover of up to EUR 100,000 will remain unchanged at 9% in 2016.

Excise taxes on gasoline and diesel fuel, alcoholic beverages and tobacco will increase next year, housing management services will be applied value added tax, and duties and taxes on gaming business will increase.

Saeima also approved the so-called solidarity tax that would apply to employees and self-employed with annual income exceeding EUR 48,600.

Additional funding will be provided to the National Armed Forces, including for the development of the Home Guard and Youth Guard and for bolstering cyber security. Likewise, additional funds will be allotted for raising salaries of police officers, Fire and Rescue Service employees, and measures planned by the State Border Guard.

Also, additional funds will be allocated for healthcare, including EUR 10 million for increasing healthcare workers' wages. Funding for the management, maintenance and renovation of municipal and national roads will be raised next year.