Budget, Financial Services, Latvia, Legislation

Next year, budget expenditure is planned at EUR 10.76 billion, and revenue - at EUR 9.58 billion. This year's expenditure is planned at EUR 10.01 billion and revenue at EUR 9.9 billion.

In 2021, revenue to the basic budget is projected at EUR 6.7 billion and expenditure at EUR 7.8 billion, while revenue to the special budget is planned at EUR 3.2 billion, and expenditure also at EUR 3.2 billion.

Next year's budget deficit is planned at EUR 1.2 billion or 3.9% of the gross domestic product.

Prime Minister Krisjanis Karins (New Unity) told the press after the coalition meeting today that on Monday a political agreement was reached on the 2021 budget.

According to the prime minister, the minimum monthly wage will be EUR 500 as of January 1, social insurance contribution will be cut by 1 percentage point, wages of teachers and medics will be raised as provided by the law, and the Constitutional Court decision on increasing the guaranteed minimum income will also be implemented in the new budget. Also, starting from July 1, the minimum social insurance tax will be introduced.

Karins thanked the coalition partners for the "interesting, but complicated work" on next year's budget, and voiced hopes that the Cabinet will support the 2021 budget tomorrow.