Budget, Financial Services, Latvia

Consolidated total budget revenue rose by 6.2% or EUR 465.6 million compared to the respective period last year.

Tax revenue stood at EUR 6.58 billion - EUR 465.7 million or 7.6% up from the first ten months in 2016. Tax revenue in January-October was 100.9% on target as EUR 56.2 million more was collected in taxes than planned.

In the first ten months of this year revenue target on all biggest taxes has been met.

Value added tax (VAT) revenue has increased 7.9% or EUR 131.4 million year on year, showing the biggest rise. Even though VAT revenue was slightly below target, the Finance Ministry believes that VAT revenue projection will be achieved by the end of the year as a result of implementation of projects co-financed by the European Union.

Social contributions showed a 8.6% or EUR 150.7 million growth and personal income tax showed a 9.8% or EUR 121.5 million growth.

Revenue from excise tax in the first ten months of this year exceeded the target by EUR 9.6 million or 1.3%.

Non-tax revenues in the said period stood at EUR 465.3 million, declining by 4.9% or EUR 24 million from the respective period last year.

Consolidated total budget expenditures in January-October amounted to EUR 7.7 billion, which is EUR 439.9 million or 6.1% more than in the first ten months of 2016.

The Finance Ministry projects that 2017 will close with a deficit in the consolidated total budget that will be smaller than planned initially. It has been planned that the deficit will be at 0.9% of the gross domestic product (GDP) or EUR 235 million.