bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 23.02.2018 | Name days: Haralds, Almants
LatviaLatvia

FM: in 19 years surplus will form in the state budget

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe general state budget, according to the European Account System methodology, had a surplus last year. According to the current estimate, the budget surplus is expected to be 0.0 – 0.2% of GDP, as reported by Finance Ministry.

Last year’s consolidated budget’s revenue was EUR 9,069.9 million, growing by 2.8%. Tax revenue was EUR 7,419.6 million last year. Their growth is believed to be the main factor for general revenue growth. Compared with 2015, they grew by EUR 416.9 million or 6.0%. 2016 tax revenue plan was completed 100.8%, exceeding expectations by EUR 56.5 million.

Positive effect for tax revenue growth was provided by grey economy combating measures and tax administration improvement measures. The biggest increase of tax revenue came from excise tax and corporate income tax. Excise tax revenue exceeded expectations because of increased consumption of diesel fuel and tobacco products and tax rate increases for products of those groups.

Corporate Income Tax plan’s completion was contributed from increase of fees and reduction of repayment rates. This tax revenue level forms 29.6% of the predicted GDP, which is the highest tax revenue level in recent years, the ministry reports.

Tax revenue was EUR 563 million, which is EUR 63.9 million or 12.8% higher than it was 2015. The state budget’s non-tax revenue plan was completed at 113.3%. A significant portion of the plan came from revenue from illegal finances confiscated from money laundering schemes. According to estimates, this proportion is equal to EUR 46.8 million.

Surplus of the general government budget was also secured by the correction of EU funds in accordance to the amount of funding received from the European Commission. In 2016, EU fund expenditures (without state co-funding) were significantly higher than the funding received from the EC.

According to data from the State Treasury, the 2016 state consolidated budget had a deficit of EUR 101.7 million. At the same time, foreign financial assistance had declined by EUR 254.9 million when compared with 2015. This is likely because of the expected increase of investment flow in the near future.

FM reports that the general budget’s expenditures were EUR 9.17 billion last year. Compared with 2015, they have declined EUR 23.2 million or 0.3%. Lower capital expenditures were also noted in the 2016 budget, declining by EUR 256.4 million or 27.9%. A total of EUR 663.5 million was issued in capital expenditures. This decline is associated with the transition period of EU fund project cycle.

In addition, 2016 also had lower expenditures for interest payments for state debt maintenance, which is mainly tied to the State Treasury’s successful work with maintenance of the state debt and refinancing of commitments.

Similar to last year, a rise was noted in social benefit expenditures and general expenditures, which grew by EUR 114.4 million and EUR 129.9 million (4.4% and 4.1% respectively). The rise of expenditures for social benefits is largely associated with the wage level and the number of benefit recipients in the country, Finance Ministry notes.

Revenue of the state base budget for 2016 was EUR 5.16 billion, which means a 1.4% (EUR 68.8 million) increase in comparison with 2015. The rise in revenue is associated with higher tax revenue. Expenditures were EUR 5,400.8 million. Compared with 2015, it is a 1.4% (EUR 78.6 million) reduction.

Expenditures on goods and services were EUR 31.6 million lower than initially planned. This was largely affected by lower expenditures in Finance Ministry, Economy Ministry, Education and Science Ministry and Environmental Protection and Regional Development Ministry. This helped create some savings in the budget. Payments to the EU budget and international cooperation were EUR 33 million lower than previously planned. This can be explained with EU budget amendments that secured lower fees for member states.

Revenue of the state special budget was EUR 2,338.1 million (up 1.9% or EUR 43.9 million when compared with 2015). The rise in revenue was below the rise of expenditures. Expenditures in 2016 were equal to EUR 2,280.8 million (+4.0% or EUR 87.7 million when compared with 2015).

A smaller surplus formed in the state special budget when compared with 2015. Compared with the surplus that was recorded in 2015 (EUR 91.1 million), it declined to EUR 47.3 million in 2016. The most notable increase in the state special budget was noted for expenditures on unemployment, illness and other benefits, which grew by EUR 61.0 million or 15.7%. Pension expenditure growth was EUR 26.9 million or 1.5%.

Ref: 224.109.109.2941


Leave a reply

SEB Bank: more employment options will open up and workers will become more selective

«It is becoming easier to change jobs nowadays. The largest selection of employment options are found in regional centres and cities, especially Riga and Pieriga. We see fewer employment options in regions even though there is still considerable demand for workers there,» predicts SEB Bank’s macroeconomics expert Dainis Gašpuitis.

ABLV Bank’s manager claims the bank is ready for cancellation of payment restrictions

ABLV Bank is ready for cancellation of payment restrictions, said the bank’s chairman Ernests Bernis during a press-conference on Thursday, 22 February.

62.9% of Latvia’s population was employed in 2017

Compared to the year before, in 2017 employment rate grew by 1.3 percentage points and number of employed persons by 1.5 thousand. Employment rate among men grew faster than among women – by 1.6 percentage points and 1.0 percentage points, respectively. 894.8 thousand people or 62.9 % of Latvia population aged 15–74 were employed in 2017.

Lithuania and Latvia: the tale between two sisters marked with rivalry

Relations between Lithuania and Latvia, two tight-knit Baltic neighbours, may exemplify a sisterly relationship from the first sight, but just over the course of a single week, several pings rang, signalling that rivalry is, and has always been, a component of coexistence.

Lembergs unable to organize his private life because of intense court proceedings

Lembergs unable to organize his private life because of intense court proceedings

Unemployment level in Latvia decreased to 8.7% in 2017

85.4 thousand people aged 15–74 in Latvia were unemployed in 2017. Compared to 2016, the number of unemployed persons has dropped by 9.9 thousand or 10.4 %.

Council member: ECB is openly dissatisfied with restrictions imposed on Rimšēvičs

The European Central Bank (ECB) is openly dissatisfied with restrictions imposed on one of its council members – governor of the Bank of Latvia Ilmārs Rimšēvičs, said council member of the Bank of Latvia Edvards Kušners in an interview to 900 seconds programme of LNT.

Defence expenditures in Latvia planned at EUR 234 million in 2018

Latvian government plans to spend EUR 234 million on defence projects, including procurement of transports, ammunition, armaments and individual equipment, in 2018 as confirmed by Defence Ministry.

Ministry cancels mandatory procurement component permits for five CHP plants

Latvia’s Economy Ministry has made a decision to cancel the permit to sell electricity within mandatory procurement component for five other renewable energy co-generation plants plants: SIA Madonas Eko, SIA Eiro-Āzijas investment agency, SIA EVOKEM, SIA M Parks, and SIA Eco Latvis.

NSC proposes Maizītis for a second term as Chief of Constitution Protection Bureau

Members of Latvia’s National Security Council have decided to propose the current head of the Constitution Protection Bureau Jānis Maizītis for another term at the helm of this institution, as BNN was informed by the State President’s Chancellery.

Latvijas gāze’s subsidiary Gaso proposes reducing gas transmission price

Latvijas gāze’s subsidiary Gase has turned to Public Utilities Commission with a proposal for a new natural gas transmission system service’s tariff project, providing for a reducing gas transmission price by 18-46% for more than 95% gas consumers.

FCMC invites Bank of Latvia to provide ABLV Bank with yet another emergency loan

The Finance and Capital Market Commission (FCMC) has invited the Bank of Latvia to issue ABLV Bank another emergency loan.

Crime rate in 2017 was the lowest in Latvia’s history

Last year’s crime rate turned out the lowest in Latvia’s history, as reported by Prosecutor General Ēriks Kalnmeiers in his annual report.

LEC: government priorities should include searching for causes and solutions, not the guilty

Latvian Employers’ Confederation (LEC) is worried about ongoing events and their negative effect on the stability and future development of the country’s economy. LEC believes that stabilization of the financial situation requires careful coordination of actions between institutions and the government.

Producer price level in Latvia grew 0.9% in January

Compared to December 2017, level of producer prices in Latvian industry rose by 0.9 % in January 2018. Prices of products sold on the domestic market went up by 1.2 % and prices of exported products by 0.6 %.

Latvian President believes country’s financial system is stable; prime minister plans to report to European Council

«Latvia’s financial system is stable, and there is no reason to worry about possible instability of the banking system. Banks continue working as usual,» says the President of Latvia Raimonds Vējonis.

Corruption Perception Index in Latvia experienced no major changes in 2017

Latvia’s positions did not improve much in Transparency International’s compiled Corruption Perception Index 2017, said Delna – Society for Openness acting director Liene Gātere in an interview to Rīta panorāma programme.

Latvian citizens arrested in Britain under suspicions of organizing slavery

Five people were arrested in a joint international operation by Latvian and British law enforcement operatives, as confirmed by Latvian State Police.

Opinion: Russia is trying to use the situation to create chaos in Latvia

Russia is trying to use the established situation to create chaos in Latvia. Efforts, however, are fated to fail, says chairman of Saeima’s Defence, Internal Affairs and Corruption Prevention Committee Ainars Latkovskis.

Dismissal requested for Latvia’s Finance Minister; parties worried about finance sector sinking deeper

Latvia’s Finance Minister Dana Reizniece-Ozola has failed to prevent the decision made by United States Department of the Treasury, which is ruinous for the country’s financial sector and humiliating for its reputation, says chairman of New Conservative Party Jānis Bordāns.

Defence Ministry: a massive information campaign is being realized against Latvia

Considering events of the last several days in the country’s banking sector and the arrest of the governor of the Bank of Latvia – Ilmārs Rimšēvičs – it is entirely possible that someone is currently realizing a massive information operation. Its structure and execution is not unlike the one observed in USA, France and Germany during the pre-election period, BNN was told by Latvia’s Defence Ministry.

Latvian parliament to search for ways to dismiss current Bank of Latvia governor

Members of Latvia’s Saeima plan to search for a solution in the matter regarding the possible dismissal of the governor of the Bank of Latvia Ilmārs Rimšēvičs.

Bank of Latvia governor: I have received death threats

«This situation is incredibly complicated. This situation is quite possibly the most complicated one I have ever been in. I feel a great deal of support from people I don’t know, as well as my friends and family members. I have decided to not back down – I am innocent. The the people attacking my reputation have only one goal in mind – to have me step down,» said the governor of the Bank of Latvia Ilmārs Rimšēvičs during a press conference on Tuesday, 20 February.

Proportion of people working in Latvia’s culture sector is larger than the average in EU

The number of people working in Latvia’s culture sector is equal to 4.5% of the total number of employed people in the country. This proportion is also larger than the average one across the European Union, according to data published by Eurostat.

Ministry: idea for compulsory secondary education should be put on hold for now

Considering that Latvia’s Education and Science Ministry has several ongoing industry reforms, it would be best to put the proposal for compulsory secondary education on hold, said Education and Science Minister Kārlis Šadurskis during a meeting of Saeima’s Education, Culture and Science Committee.