bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 25.06.2017 | Name days: Maiga, Milija
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

Real estate purchase «pain threshold» in Latvia – EUR 100,000

In relation to the possibility of purchasing a new home, Latvian residents view EUR 100,000 as the «pain threshold». The critical border for new project apartments is 1,300 EUR/m2. For standard apartments it is 1,000 EUR/m2. For private homes it is 1,600 EUR/m2, according to results of a study by PrivatBank.

Lembergs & Co. gathered to discuss «problems» of the high and mighty

Political businessman Ainars Slesers held a friendly discussion with his associates – Aivars Lembergs, Andris Ameriks, Janis Urbanovics, Janis Duklavs and Valerijs Kargins – at Ridzene Hotel. The group discussed toppling Valdis Dombrovskis’ government, replacement of multiple high-ranking officials and the possible sale of pieces of land within Riga Freeport’s territory, according to transcripts from the conversation published by Ir magazine and provided by anonymous sources.

Lithuania set to limit cash payments to 3,000 euros

The Farmers and Peasants-led Lithuanian Cabinet has approved a draft bill envisioning restrictions on use of cash, limiting the kind of settlements up to 3,000 euro.

Saeima establishes indexation increase for pensioners with high seniority

On Thursday, 22 June, Latvia’s Saeima approved Social and Employment Matters Committee’s prepared amendments to the Pension Law in two readings, ensuring greater pension indexation for multiple pensioner groups next year.

Romanian Parliament ousts Grindeanu government

The Romanian government of Prime Minister Sorin Grindeanu has not survived a no-confidence vote and has fallen after less than six months in power.

Rail Baltica agreement will allow trains to travel at 240 km/h

Saeima of the Republic of Latvia will soon ratify Rail Baltica agreement, which is expected to allow passenger trains to travel at a speed of 240 km/h instead of 120 km/h. Higher travel speed will also ensure cargoes from Tallinn reach Poland within two days.

Mamikins: Latvia is becoming a landfill for rich European countries

A very large fire took place at an illegal landfill in Jurmala this week. According to information from the State Environmental Protection service, the fire had engulfed 23 tonnes of waste, mainly plastic waste, says Latvian MEP Andrejs Mamikins.

Latvian businessmen use e-commerce opportunities for business development

With e-commerce volumes growing around the world, Latvian businessmen use it more and more often for business development, including exports of goods and services. As noted by DPD, the number of packages sent to foreign countries grew 22% last year.

Latvia wishes to change its state president’s election process

Reviewing proposals to change the state president’s election process, Saeima’s Legal Affairs Committee decided to submit proposals developed by the work group to different Saeima factions for review, as BNN was informed by Saeima’s press-service.

Coalition parties close to making final decision with tax reform; no more obstacles

Coalition parties no longer have any more differences of opinions in regards to tax reform principles. Parties are close to making the final decision, said Economy Minister Arvils Aseradens after the meeting with Finance Minister Dana Reizniece-Ozola.

Saeima plans to introduce personalized voter cards

For next year’s Saeima elections, voters who only have an ID card and no valid passport are planned to be provided with personalized voter cards.

Producer price level in industry up 0.4% in Latvia

Compared to April, the level of producer prices in Latvian industry grew by 0.4 % in May 2017. The prices of products sold on the domestic market increased by 0.3 %, whereas the prices of exported products grew by 0.5 %. The prices of products exported to euro area countries grew by 0.8 % and of products exported to non-euro area countries – by 0.4 %.

Opinion: local media in Daugavpils are corrupt

«Now that we constantly face new and more elaborate security risks, concerns tend to increase about the fight for people’s minds in the information space. This is why the bar for professional journalists should be held high. Baltic Centre for Media Excellence plays an important role in all this,» said chairman of Saeima’s Foreign Affairs Committee Ojars Eriks Kalnins after the meeting.

Life in Riga remains more expensive than life in Vilnius and Tallinn

Riga is recognized as 126th most expensive city in the world. Life in the Latvian capital is considerably more expensive than it is in Vilnius or Tallinn, according to a study published by *Mercer Human Resource Consulting.

Most universities in Estonia to cut number of new students this year

Three of the four universities working in Estonia have expressed plans to bring down the number of admissions in the coming academic year.

Foreign investors do not support amendments proposed for Financial Instruments Market

The Foreign Investors Council in Latvia does not support proposals for protection of rights of minority shareholders, which are include and proposed in amendments to the Law on the Financial Instruments Market.

Ligo celebration causes condom sales to go up in Latvia

Nearly 39% Latvian residents plan to spend around 21 to 40 euros on Ligo, according to results of a survey performed by Maxima. 22% of respondents plan to spend around 20 euros on the celebration. 22% of residents plan to spend 41 to 60 euros, and 17% - more than 61 euros.

Latvian government asked to compensate profits lost from rejecting Nord Stream 2

Considering the stance of the Latvian Republic in relation to Nord Stream 2 project, in which the Cabinet of Ministers decided not to permit the participation of Ventspils Freeport, Noord Natie Ventspils Terminal and Baltic Express have decided to ask the government to compensate lost profits. An official request has been submitted to the prime ministers.

Hospital: countryside residents with no easy access to a urologist are at risk

For the third consecutive year urologists from Riga Eastern Clinical University Hospital’s travel to Latvia’s far-away regions to provide men there with free health check-ups and consultations. This year urologists decided to visit Dobele, Cesis, Rezekne and Jekabpils.

Stoltenberg visits Iron Wolf exercises in Lithuania

NATO Secretary General Jens Stoltenberg has visited Lithuania on Tuesday, June 20, to see international military drill Iron Wolf 2017 and has noted that the involved countries are protecting each other.

German Chancellor could support introducing eurozone budget for sensible purposes

Angela Merkel, the Chancellor of Germany, has stated that she could support the introduction of a separate eurozone budget and a position of an eurozone finance minister, in case of right circumstances and sensible aims.

Prosecutor decides to end criminal case against former KNAB officer Juris Jurass

In spite of the decision by Security Police to present charges, the prosecutor responsible for the case has decided to end the criminal process commenced against the now former official of Corruption Prevention and Combating Bureau Juris Jurass for intentional disclosure of official secrets.

Latvia wants to introduce electronic working time tracking in construction

Saeima’s Budget and Finance Commission has expressed unanimous conceptual support for amendments to the Law on Taxes and Duties. These amendments provide for the introduction of electronic working time tracking system in construction, as BNN was informed by Saeima’s press-service.

Alleged bomber shot in Brussels central station

In the central station of Brussels, Belgium, soldiers have shot a man suspected he was to detonate explosives, local authorities have stated. The man was shot and later died after reportedly setting off a small explosion on Tuesday, June 20, and no-one else is believed to have been injured.

Expert: pension capital grows, but the Latvia still has a ways to go

«Latvia’s pension system has been named one of the best in the world multiple times. Pension capital in it has grown rapidly over the years. The volume of savings gathered on the 2nd level pension system by the end of Q1 2017 came close to EUR 3 billion. The volume saved on the 3rd level pension system was close to EUR 4 billion,» explains Nordea Pensions Latvia board member Ilja Arefjevs.

Newest comments