Budget, Financial Services, Latvia, Legislation, Markets and Companies
International Internet Magazine. Baltic States news & analytics
Friday, 29.03.2024, 10:03
Government approves 2018 budget in Latvia
In 2017, Latvia’s budget revenues are planned at EUR 8.03 billion and
expenditures at EUR 8.33 billion.
In 2018, revenues in the government basic budget are planned at EUR 6.16
billion and expenditures at EUR 6.49 billion.
Compared to 2017, next year, expenditures in the government basic budget
will grow by EUR 400.4 million or 6.6%.
Financing to EU-funded projects, policy instruments and other projects
co-funded by foreign countries will decrease by EUR 78.4 million next year.
Revenues in the government special social budget are projected at EUR 2.77
billion and expenditures at EUR 2.65 billion, with the expenditures expected to
grow by EUR 230.4 million or 9.5% against this year.
Subsidies to local governments are planned at EUR 350.88 million next year,
with EUR 256,373,650 of that amount earmarked for teachers’ wages, EUR
65,637,452 for special pre-school institutions and EUR 27,893,038 for nursery
school teachers’ wages.
The central government’s budget subsidy to the local governments is planned
at EUR 57.58 million, which includes EUR 35,821,803 for the local governments’
financial cohesion fund, a EUR 21,106,179 special subsidy and EUR 657,580 for
children’s homes and residents of old people’s homes.
According to the budget bill, 80% of personal income tax revenues will go
to municipal budgets and 20% to the central government budget. The local
governments are expected to receive an estimated EUR 1.383 billion in personal
income tax revenues and that their loan limit will be increased by EUR
118,138,258 next year.
Latvia’s maximum national debt is planned at EUR 10.25 billion at the end
of 2018, and the finance minister will be authorized to issue guarantees worth
EUR 35,956,620 on behalf of the state. The finance minister will also be
authorized to cancel EUR 40,897,907 worth of liquidated companies’ debts to the
government.
The value of Latvia’s GDP is expected to reach EUR 28.359 billion next
year, and the budget deficit is projected at 1% of GDP.
The draft budget law also stipulates the amount state-owned enterprises are
expected to pay in dividends to the government budget: Latvenergo power utility will have to pay EUR 94.22 million, Latvijas Valsts Mezi state forest
manager EUR 38.22 million and Latvijas
Loto national lottery operator EUR 2.8 million.
The budget bill has yet to be approved by Saeima. The 2018 draft budget
will be submitted to Saeima today.