Budget, Financial Services, Latvia, Taxation

The surplus in January-June 2017 was by EUR 44.6 million higher compared to the first half of 2016 which was due to a steeper rise of tax revenues. In the first half of this year, tax revenues stood at 101.5% of the target and were by EUR 55 million higher than planned.

Revenue to the Latvian general government consolidated budget was EUR 4.822 billion in the first half of 2017, growing 5.9% or EUR 266.9 million year-on-year, and expenditure increased by 6.8% or EUR 245.1 million to EUR 3.841 billion. Tax revenue increased by 6.8% or EUR 245.1 million compared to the first half of 2016 and reached EUR 3.841 billion.

Expenditure in the general government consolidated budget totaled EUR 4.591 billion in the first six months of 2017, rising by EUR 222.3 million or 5.1% year-on-year. Current expenditure grew by EUR 160 million or 10.3% due to higher payroll costs and costs for purchase of goods and services.

The central government basic budget showed a surplus of EUR 120.6 million, up by EUR 81.1 million from the first half of 2016. Revenues increased by EUR 146.4 million or 5.5% to EUR 2.788 billion due to higher tax revenue, and expenditure grew by EUR 65.3 million or 2.5% to EUR 2.688 billion with the most notable rises recorded for current expenditure and capital expenditure.

There was a EUR 12.7 million deficit in the central government special budget in January-June 2017 as revenues rose EUR 51.8 million or 4.6% to EUR 1.188 billion, while expenditure reached EUR 1.201 billion, up EUR 52.4 million or 4.6%.

The local government consolidated budget had a surplus of EUR 100.9 million which is by EUR 26.9 million less than in the first half of 2016. Revenues increased by EUR 112.2 million or 9.9.% to EUR 1.244 billion, while expenditure reached EUR 1.143 billion, growing EUR 139.1 million or 13.9%.