Budget, Financial Services, Latvia

International Internet Magazine. Baltic States news & analytics Tuesday, 19.01.2021, 23:22

Latvia's budget runs up EUR 405.9 mln deficit in January-October

BC, Riga , 27.11.2020.Print version
Latvia's general budget had a deficit of EUR 409.9 mln in January-October, while in the same period last year the general budget had a surplus of EUR 444 mln, the Finance Ministry told LETA.

Consolidated general budget revenue in the first ten months of 2020 amounted to EUR 9.32 bn and expenditure to EUR 9.73 bn.

The Finance Ministry explains that the deterioration of the budget balance was due to a EUR 117.8 mln or 1.2% reduction in revenue and a 736.1 mln or 8.2% increase in the budget expenditure as compared to the first ten months of 2019.

"The situation is different in the state and local government budgets. While the state budget had a deficit of EUR 498.4 mln in the first ten months of this year, the local government budget had a surplus of EUR 88.5 mln," the ministry said.

The 8.2% increase in general government expenditure in the first ten months of the year is in part due to the support measures approved by the government to ease the impact of the Covid-19 restrictions.

The Finance Ministry expects that support for the national economy approved by 22 November would increase the general government budget deficit this year by EUR 1.27 bn or 4.5% of gross domestic product.

Next year, general budget deficit is projected at EUR 2.1 bn or 7.6% of GDP.

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