Budget, Financial Services, Latvia, Taxation

Tax revenue to the general government consolidated budget in January-November 2017 was at 101% of the target, with actual revenue being EUR 74.7 million higher than planned.

According to the State Treasury data, the surplus in the general government consolidated budget in January-November this year was EUR 116.6 million or by EUR 23.7 million less than in January-November 2016.

In November 2017, the general government consolidated budget had a deficit of EUR 145.2 million due to lower revenue from foreign financial aid.

Revenue to the general government consolidated budget totaled EUR 8.724 billion in January-November 2017, up by EUR 497.1 million or 6% from the eleven-month period in 2016.

Revenue from labor tax was above the target due to the increase of the average wage. At the same time, revenue from value-added tax (VAT) was EUR 2.3 million short of the target but the Finance Ministry expects annual revenue from VAT to meet the target.

Non-tax revenues in January-November 2017 were EUR 501.7 million, down EUR 20.5 million or 3.9% year-on-year.

Expenditure in the Latvian general government consolidated budget in the first eleven months of this year was EUR 8.607 billion, which is a growth by EUR 520.7 million or 6.4% year-on-year. Higher expenditure was mostly due to increased capital expenditure resulting from more active implementation of the EU funds and growth of wages.