Budget, Financial Services, Latvia

In January-October 2019, budget revenue grew by EUR 367.6 mln or 4.1 % y-o-y, while budget expenditure increased by EUR 438.2 mln or 5.1%. 

Of the ten-month budget revenue, foreign financial assistance made up EUR 113 bn, up EUR 95.4 mln or EUR 9.2 % y-o-y.

Tax revenue grew by EUR 273.1 mln or 3.8% to EUR 7.4 bn in the ten months of this year. The abolition of the advance payments of corporate income tax as of July 1, 2018 left a significant impact on corporate income tax revenue, which dropped to EUR 26.2 mln or by EUR 265.8 mln lower than in the respective period last year.

"The positive situation in the job market as employment and the average wage are rising, left a positive impact on the revenue from laborforce taxes. Individual income tax rose by EUR 137.6 mln or 9.9%, while social insurance contributions rose by EUR 196.8 mln or 9%," the ministry said.

Revenue from the value added tax (VAT) in the first ten months of this year increased by EUR 165.7 mln or 8.3%. Revenue from excise tax rose by EUR 38.2 mln or 4.5%.

Non-tax revenue accounted for EUR 572.5 mln down EUR 21.9 mln or 3.7%.