bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 23.11.2017 | Name days: Zigfrīda, Zigrīda, Zigrīds
LatviaLatvia

FM: state general budget revenue rise of 2016 is considered moderate

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn the first seven months of 2016, the surplus of Latvia’s state general budget was EUR 207.6 million, which means an increase of EUR 76 million in comparison with the same period of 2015. The surplus consists of the surplus from the municipal budgets worth EUR 108.6 million and the state budget surplus of EUR 99 million.

In spite of the increased revenue from the tax plan and non-tax revenue increase in the first seven months of 2016, this year’s increase of state general budget revenue of EUR 34 million is considered moderate.

Low growth rate can be explained with a major decline in revenue from foreign financial aid, where a decline of EUR 222.9 million or 30.4% was noticed in the seven-month period of 2016. This is because investment turnover of the 2014-2020 planning period of European Funds has not yet reached the level of intensity in order to receive payments equal to previous planning periods.

The general state budget’s tax revenue plan for the first seven months has been completed by 100.4%, exceeding planned revenue by EUR 18.1 million. Compared with the same period of last year, tax revenue has increased by EUR 218.6 million or 5.4%, where the largest contribution was secured by labour tax, VAT and excise tax revenue.

Revenue form PIT, on the other hand, has declined 1.7% in comparison with the plan. The main reason for the failure to meet the plan’s expected goal is related to significantly increased repayments based on annual income declarations. EUR 68.5 million was repaid in total in the first seven months of 2016, which is EUR 39.5% more in comparison with the same period of 2016. The increase of repayments can also be explained with the partial automation of the PIT repayment process. Nevertheless, in spite of the major increase in repayments, revenue from PIT has increased by EUR 40.6 million or 5% in comparison with the same period of 2015.

Expenditures of the state general budget were EUR 42 million less in comparison with the same period of 2015. Lower expenditures were noted in all budget levels, except for the state special budget, where expenditures for social benefits remain on a higher level in comparison with the year before. The biggest influence on the reduction of expenditures was caused by state budget service of EUR 55.1 million or 20.8%. Reduction of expenditures on goods and services by EUR 14.2 million or 2.2% is related to bigger expenditures related to Latvia’s presidency and XI Latvian school song and dance celebration last year.

This year, it is also planned to allocate an additional amount of EUR 19.2 million to enhance Latvia’s National Armed Forces.

The biggest rise in expenditures in the seven months of 2016 was noticed in grants and subsidies – by EUR 125.8 million or 12.9%. The state budget’s expenditures on social benefits had increased by EUR 67.4 million or 4.5% in the seven months of 2016. As birth rates gradually improve in the country, the country’s state budget expenditures for child care benefits and family benefits.

The state budget’s expenditures for social benefits increase more rapidly, which can be explained with larger expenditures for sickness and unemployment benefit, as well as parent benefits. This can be explained with an increase in the number of benefit recipients. Since 2015, when amendments were added to the legislation, cancelling the cap on size of benefits, the average size of benefits continued to increase, which was also affected by the rapid rise of minimum wages in 2014. The trend for the increase of the number of recipients of sickness and unemployment benefits continued in the first seven months of 2016. In spite of the gradual reduction of the number of the level of unemployment, the proportion of unemployed people who receive benefits continue to increase. While at the end of 2012, the proportion of unemployed people who receive benefits was 24%; their proportion in the middle of 2016 has increased to 50%. In addition, state budget expenditures on state pensions were higher in the first seven months of 2016 had been higher in comparison with the year before. At the same time, the increase of expenditures was also affected by the increase of the average monthly pension payments. This is related to pension indexation that was performed on 1 October 2015.

Finance Ministry reports that the general state budget deficit is estimated to be around 0.9% of GDP for 2016. Lower budget deficit is provided by lower interest rates, payments to the EU budget and lower capital expenditures on EU fund projects (especially for municipal budgets).

Ref: 102.109.109.8752


Leave a reply

Finnish medication prescriptions to be valid in Estonia

In Estonia, Finland's digital prescriptions of medications will be valid from summer 2018 and vice versa – from around mid-2019.

Talks commence on restoring ferry traffic between Ventspils and Saaremaa

On Wednesday, 22 November, a delegation from Saaremaa municipality arrived at Vetnspils Freeport to discuss with representatives of Ventspils municipality and freeport the proposal to restore ferry traffic between Saaremaa and Ventspils.

Family of killed Maltese journalist take police to court

The family of the killed Maltese journalist Daphne Caruana Galizia has sued police believing that it does not perform an impartial investigation.

Saeima reduces VAT for vegetables, berries and fruits typical for Latvia

Starting 2018, a reduced VAT rate will be applied for fresh fruits, berries and vegetables in Latvia. This is provided by amendments approved by the Saeima on 22 November for Law on Value Added Tax.

Georgian anti-terrorist raid ends tragically

In the Georgian capital Tbilisi, security officers have conducted an anti-terrorist raid in an apartment, where a shoot-out has started and three suspected militants and a special forces' soldier have been killed.

Jerošenko: Ušakovs offers unhealthy policy, Harmony is used as Lembergs’ «satellite party»

«Cooperation between Harmony and Aivars Lembergs’ Union of Greens and Farmers has always existed. It existed even before Harmony first appeared in Riga City Council. The situation is the same in the Saeima, even though Concord is in the opposition. Still, in situations when one or the other matter important to Lembergs appears, one does not have to be a great politologist to notice the ties between those parties...

Bosnian Serb commander punished with life imprisonment for Srebrenica

The UN the International Criminal Tribunal for the former Yugoslavia handed a life imprisonment sentence to Ratko Mladić after it found the former commander of Bosnian Serb forces guilty of genocide and crimes against humanity committed in the 1990s during the Bosnian War.

EC positive about Latvia’s 2018 budget project

Based on the conclusion from the European Commission, Latvia’s budget project for 2018 fully fits conditions listed in the Stability and Growth Pact. In accordance with EC’s estimates, the structural balance of Latvia’s general budget is viewed at -1.8% of GDP. Government budget expenditures, on the other hand, are expected to grow by 7.1 percentage points.

Producer price level in Latvia declined 0.2% in October

Compared to September, the level of producer prices in Latvian industry dropped by 0.2 % in October 2017. Prices of products sold on the domestic market decreased by 0.5 %, while prices of exported products went up by 0.1 %.

Vaškevičs feels «harsh but fair» attitude from court justice system in Austria

Former deputy director of Latvia’s State Revenue Service Vladimirs Vaškevičs, who is accused of bribery and whose extradition from Austria has been a priority for Latvian authorities for some time now, says he feels «harsh but, thank God, fair» attitude from the Austrian court justice system.

Antāne: lost Russian cargoes have cost Latvia nearly 50 million in nine months

Latvia’s economy has lost nearly EUR 50 million in nine months because of missed Russian transit cargoes. While Russian Railway had approved 90% of oil and coal cargoes for transit through Ventspils port at the beginning of the year, this amount had declined to a mere 5% by September, says Baltic Association – Transport and Logistics President Inga Antāne.

In pictures: Museum of painter, Holocaust survivor Bak opened in Vilnius

In Vilnius, a museum to Jewish-Polish painter Samuel Bak has been opened. During the occupation of Lithuania by the Nazi Germany, the artist survived the Holocaust in the country.

Ratio of old people and invalids on a rise among unemployed people

The total number of unemployed people has been decreasing in recent years. However, the ratio of old people and invalids continues increasing in the ranks of unemployed people. On top of that, the number of lasting unemployed people remains high and largely unchanged in the country.

Saaremaa looking into possible ferry traffic to Latvia

The local government of the largest Estonian island is looking into possible interest of five shipping companies in opening ferry traffic between Saaremaa and Latvia.

Balta: exhaustion and overload are the most common causes for accidents at work

More than EUR 20,000 has been paid in compensations for injuries acquired at work this year so far, according to information from insurance association Balta. Compared with the same period of last year, the number of accidents has grown 40%.

Estonian town tempts population to reregister with spa in Latvia and 100 euro payment

The town of Keila, located 25 kilometres away from Tallinn, has started a one-and-a-half month campaign to motivate its residents to register back in the town as many of them have registered in the Estonian capital, which grants free public transport to its population.

EU to impose fine to Poland if logging in Białowieża forest not stopped

The European Court of Justice has issued to Poland a 15-day deadline to provide proof that the country has fulfilled the court's ruling to quit logging in the ancient Białowieża forest threatening with a daily fine of 100 000 euros if it fails to prove this.

Rīgas namu pārvaldnieks: building restoration will be next year’s priority

Rīgas namu pārvaldnieks plans to focus on improving technical state of its managed buildings. The company plans to restore several dozen buildings next year and up to 100 buildings a year in the next five years, says RNP chairman Aivars Gontarevs.

LCB: even deputies should fulfil their promises

Latvijas ceļu būvētājs, which is an association in Latvia with ties to multiple road and bridge construction companies, invites deputies to support the proposal for the restoration of the State Road Fund, BNN was told by the association’s chairman Andris Bērziņš.

Russia rejects claims of nuclear accident despite radioactive cloud over France

Russia has stated that a nuclear accident has not taken place in its territory although its weather service has found high amounts of traces of a radioactive isotope.

Study: taxes for business in Latvia – the most attractive among Baltic States

Latvia’s tax system is the most attractive among Baltic States and 13th most attractive among 190 countries of the world, according to the latest study performed by the World Bank and PricewaterhouseCoopers on tax systems around the world.

Turkish journalist punished with prison term for tweet

A court in Turkey has sentenced on Tuesday, November 21, a journalist from opposition newspaper Cumhuriyet to three years behind bars over accusations of spreading terrorist propaganda in relation to a post on Twitter, which had been briefly on the microblogging site this spring.

Latvia – 35th country in the world ICT development-wise

This year Latvia reached 35th place in the world in terms of development of information and communication technologies, as mentioned in the latest report by UN International Telecommunication Union.

Instant payment infrastructure comes online in Europe

On Tuesday, 21 November, instant payment infrastructure will be introduced across Europe. On top of that, European banks’ founded EBA Clearing will also introduce its RT1 instant payment system. The European-level solution has also been coordinated with the instant payment processing infrastructure prepared by the Bank of Latvia in August 2017, as reported by the bank.

Police dismantle criminal group that caused damage worth seven million euros to the state

Latvian State Revenue Service’s Finance Police dismantled a criminal group in November 2017. A total of 34 searches were performed and two people were found suspect. The criminal group performed tax avoidance and money laundering operations, causing damages worth nearly seven million euros to the state, BNN was informed by SRS.

Newest comments