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Sunday 24.06.2018 | Name days: Jānis

Finance Minister: 2014 budget was compiled with LM's situation in mind

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvia’s budget for 2014 was compiled with the possibility of the situation at Liepājas metalurgs (LM) becoming even worse in mind, says Finance Minister Andris Vilks.

“If the company fails to recover, it could impact tax revenue in the next couple of years. Even now all this is reflected in our economic growth – taxes are collected below the planned amount. The situation at LM could potentially impact the state’s external debt expenses. We have already included LM in the budget plan/ This will provide us a status quo on the situation. If LM goes insolvent, the situation will likely become worse,” – Vilks said in an interview to Dienas Bizness.

When asked if the next year’s budget was compiled with the thought in mind that the situation at LM will remain the same as it is new, Vilks replied: “Yes. The budget’s outlooks leans more to the possibility that LM ceases production.”

As previously reported, the draft of the 2014 budget plan was approver by the Latvian government on October 1. Finance Minister Andris Vilks then submitted the portfolio holding the documents to the Saeima Chairwoman Solvita Āboltiņa.

Next year’s state consolidated budget’s revenue is planned at EUR 7,004,260,643 and expenses – at EUR 7,142,704,902, as mentioned in the draft for 2014 Latvia’s state budget.

Revenue of the state consolidated budget is formed by the total amount of the state budget and state special budget, excluding the bilateral transactions between these two budgets.

Compared to this year’s budget, budget plan of 2014 is planned to have EUR 341.9 million larger revenue and EUR 288.9 million lower expenses.

Revenue of the state budget for 2014 is planned at EUR 5.007 billion and expenses are planned at EUR 5.275 billion. State budget’s expenses in comparison with 2013 are planned to be 8.7% larger.

The funding for state functions has been increased by EUR 513.5 million. This includes the transfer of EUR 180.8 million from the state budget to the special budget, EUR 16.3 million to interest costs, EUR 21.2 million for the next payment to the EU budget, EUR 79.1 million to subsidies and grants, EUR 127.2 million to other expenses.

The state special budget’s revenue and expenses are planned for 2014 at EUR 2.206 billion and EUR 2.076 billion respectively.

It is planned to allocate additional funding for next year’s initiatives of the state budget – EUR 243,196,103.


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  1. Ilmars says:

    LM should have been declared bankrupt 6 months ago and shut down then , because it was hopelessly insolvent.
    If the plan is to restart LM , and find some sucker to buy it , then they are dreaming. These rustbelt industries cant be given away.
    If a bunch of lying ,thieving ,black marketing ,tax avoiding and money laundering crooks couldnt make a profit , then how do they expect a born again LM to make money legitimately ?
    The State has wasted money restarting LM , wasted money on advisers , and will keep on wasting money till this abortion of a company is finally shut down.

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