Budget, Financial Services, Latvia, Legislation

International Internet Magazine. Baltic States news & analytics Monday, 15.09.2014, 12:27

Latvian PM: budget requests from ministries cannot be realistically met

Nina Kolyako, BC, Riga, 04.07.2012.Print version
Even though the amount of additional financing from this year's budget has not been set, it is clear that budget requests from ministries are much more than can realistically be allocated, Prime Minister Valdis Dombrovskis (Unity) told members of the press today after a Cabinet meeting.

''The amount of additional financing from this year's budget has not been set yet, but could be approximately LVL 60 to 89 million. It is clear that recent budget requests from various ministries cannot be realistically met,'' the prime minister said.

 

Dombrovskis said that the main topic on the next government meeting will be to evaluate the various budget requests from ministries, and decided how to allocate this additional financing from the national budget.

 

The Finance Ministry previously informed that the proposed budget amendments will be small, as the country's budget deficit cannot exceed 2.1% of GDP.

 

After several years of cost cutting during the economic crisis, this will be the first time that the budget will be amended to increase spending, instead of reducing spending.

 

As reported, compared to the first quarter of 2011, Latvia's gross domestic product (GDP) in the first quarter of 2012 has increased by 6.9%.






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