Budget, Financial Services, Latvia, Legislation

53 Saeima members voted for the budget bill, 43 voted against it.

The review of the 2009 budget law in Saeima continued for twelve hours.

Regardless of spending cuts in a number of national economy sectors, the 2009 budget is not a balanced budget as the Bank of Latvia insisted, and the consolidated budget deficit next year is projected to reach LVL 247 million, reports LETA.

The budget revenue next year is planned to reach LVL 5.316 billion and expenditures LVL 5.564 billion.

According to the budget law, the GDP of Latvia will decrease 1% next year. The initially planned income projection was cut by LVL 145 million, the planned expenditure was reduced by LVL 227.7 million.

The general budget revenues are expected to be LVL 3.69 billion, compared with LVL 3.81 billion general budget revenue this year.

The state special purpose budget tax revenues are planned to reach LVL 1.669 billion, an increase on year 2008, when these tax revenues amounted to LVL 1.436 billion. The total special purpose budget revenues are expected to be LVL 1.781 billion.

The special purpose budget expenditure is planned at LVL 1.557 billion, compared with LVL 1.220 billion this year.

It is planned to allocated LVL 369.250 million special purpose grants and LVL 7.152 million subsidies to local governments. Appropriation reserve is projected to be LVL five million.

Several priorities were defined for state 2009 budget. Altogether LVL 926.9 million or 16% of the total state consolidated budget expenditure will be allocated to ensure possibilities to uptake the European Union funds appropriations.

LVL 2.7 million will be allocated for raising the minimum salary from LVL 160 to LVL 180 as of January 1, 2009.

LVL 3.1 million will go to increase disability living allowance for persons, disabled since childhood – the allowance will be raised from LVL 50 to LVL 75 per month as of January 1, 2009. LVL 2.3 million will be allocated for disabled child premiums and also these will increase from LVL 50 to LVL 75.

LVL 71.6 million will be allocated for raising age pensions as of January 1.

Compared with state 2008 budget plan, the law foresees in 2009 additional funding for a number of undertakings that were launched already some years ago, including some programs of crucial importance: LVL 21.6 million were allocated for the program "State defense, security and integration in NATO", LVL 12.9 million – for installments for European Communities budget, LVL 68.9 million – for state debt management, LVL 67 million – to ensure that salaries for teachers could stay at the current level.

LVL 22.3 million will be used for developing the new National Library project, LVL 2.6 million – as grants for airports of Liepaja and Ventspils for ensuring inland flights; LVL one million will be allocated for introduction of new staff positions for judges and court officials at the Administrative Region Court, LVL 1.2 million – for preparatory works before the oncoming year 2010 agricultural census and year 2011 population census.

Saeima, alike the government supported introducing budget cuts for all ministries.

Funding was significantly cut also for Defense Ministry and its subsidiary Property Management Agency.

The funding for the Latvian National Opera was reduced by more than LVL two million.

Saeima supported last night to reduce parliament budget by LVL 3.2 million and agreed to allocate these budget means for other purposes. LVL 1.179 million of the aforementioned sum of money will be used to ensure free school meals for second grade pupils. LVL 114,000 will be granted for salaries and other expenses for Latvian Radio Choir. LVL 550,000 will be appropriated to raise social allowance for persons, who participated in removal of the consequences of the Chernobyl disaster from LVL 45 to LVL 60.

LVL 180,000 from the Saeima budget savings will be allocated for rehabilitation of children, who have suffered violence, LVL 36,000 – for the Occupation Museum, LVL 158,000 – to co-fund disability allowances and LVL 200,000 – for the professional and social rehabilitation of receivers of disability and age pensions. LVL 887,000 of Saeima budget savings will be used for funding science.

Science sector will receive also LVL 1,360,000, which will derive from the increased excise tax for beer.

Saeima, the same as the government, endorsed a large number of propositions from the Greens and Farmers Union regarding state support for agriculture and rural development.

Saeima, contrary to government and the responsible committee, with a large margin of votes, supported granting additional LVL 976,995 funding for the State Social Insurance Agency. This sum of money will be taken from the Welfare Ministry's social insurance budget.

With the exception of one suggestion, the state 2009 budget was endorsed such, as the government and the responsible Budget and Finance Committee previously supported it.