Budget, Financial Services, Latvia

The budget was adopted with 59 votes to 34. The budget was supported by coalition lawmakers, but the votes against were cast by the opposition and “internal opposition” of KPV LV party – Linda Liepina, Karina Sprude, Didzis Smits, while Janina Jalinska (Greens/Farmers) did not participate in the vote.

The discussions on the budget bill and 14 related bills lasted the whole day – the parliament session was about ten hours long.

Prime Minister Krisjanis Karins (New Unity), addressing the parliament lawmakers, said that this is a technical budget, largely prepared by the previous government. He thanked lawmakers for their work, underscoring that both the opposition and coalition representatives are concerned about the country’s development.

Starting from tomorrow, politicians will start work on the 2020 budget. Karins called on lawmakers to think in a long term and consider gradual development.

The coalition agreed earlier that proposals that will require additional funding in this year’s budget will not be accepted.

The majority of the parliament still supported redistribution of funds in some areas.

This year revenue in the government consolidated budget is planned at EUR 9.2 bn and expenditure at EUR 9.4 bn. In the government basic budget, revenue is planned at EUR 6.4 bn and expenditure at EUR 6.8 bn. In the government special budget, revenue is planned at EUR 3 billion and expenditure at EUR 2.8 bn.

In 2019, the general government consolidated budget is expected to run a deficit of 0.5% of GDP. Latvia’s GDP, meanwhile, is projected to grow 3 percent this year.

The 2019 has been coordinated with the European Commission and it meets the fiscal discipline requirements.