Budget, Financial Services, Latvia, Taxation

Latvia closed the first six months of this year with a budget surplus of EUR 186.2 mln. Compared to the first six months of 2015, the budget surplus increased by EUR 22.9 mln or 5.4%, mostly due to increase revenue from labor taxes, as well as increased revenue from VAT and excise duties.

In the first six months of 2016, Latvia’s budget expenditures was at EUR 4.37 bln, which was the same level as last year. As a result, this year's budget surplus is less by EUR 31.3 mln when compared to the same period last year.

Revenues to the Latvian central government consolidated budget in 2016 are planned at EUR 7. 4 bln and expenditure at EUR 7. 7 bln, with a budget deficit at 1 % of GDP. The Latvian GDP this year is planned at EUR 26.1 bln in current prices with the economic growth expected at slightly less than 3%.