bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 19.01.2018 | Name days: Alnis, Andulis
LatviaLatvia

FM: next year’s budget benefits to be felt by everyone – residents, businesses and municipalities

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«The Cabinet of Ministers has developed the project of the 2015 budget having set as priorities the country’s social and national security, long-tern economic growth and improvement of business competitiveness,» – as the Latvian Finance Minister Janis Reirs commented on the country’s budget plan.

Finance Ministry promises that everyone will feel the benefits of the next year’s budget – residents, businessmen and municipalities.

Reirs adds that the government pays special attention to previously initiated tasks. With that, the minimum wage in Latvia will be increased from EUR 320 to EUR 360 on January 1st, 2015. This measure is aimed to improve income equality of the country’s population, improve the quality of life for poor residents and reduce shadow economy.

The next year’s state consolidated budget revenue is planned at EUR 7.3 billion. The budget expenses are planned at EUR 7.5 billion. Budget deficit is planned at 0.9% of GDP. The revenue of the state consolidated budget’s revenue is planned at EUR 8.9 billion and expenses are planned at EUR 9.2 billion.

The general state budget deficit is predicted to be EUR 247.6 million (1% of GDP) in accordance with European System of National and Regional Accounts for 2015.

The Finance Ministry plans that the general budget deficit of 2015-2017 will not exceed the allowed deficit level: 1% of GDP in 2015; 0.9% in 2016 and 0.7% in 2017.

In accordance with the medium-term macroeconomic development and fiscal policy for 2015-2017, next year’s economic growth is planned at 2.8% in 2015, 3.3% in 2016 and 3.6% in 2017. However, even considering the uncertainty in the economic environment, macro-economic risks have become lower.

Economic development will be directly dependent on changes in the external environment and geopolitical risks. If Russia decides to introduce additional sanctions that will affect Latvia’s national economy, growth may become slower than expected. If oil prices and Russian rouble value continue to decline, it will have a negative effect on completion of economic projections.

Compared with 2014, Latvia’s consolidated budget expenses will increase by nearly EUR 283.3 million.

«Considering the complicated geopolitical situation created by the Russian-Ukrainian conflict and the growing need for security in Europe, Latvia’s government provides special attention to our country’s external and internal security. This is why the next year budget will be our country’s social and national security budget,» – explains Reirs.

It is planned to increase funding for Defence Ministry’s basic functions by EUR 37.9 million. This is aimed to significantly strengthen the capacity of Latvia’s army and the National Guard, as well as create rapid response units. The Interior Ministry is planned to be provided with an additional amount of EUR 21.5 million.

«The government has created an opportunity to increase revenue of the next year’s budget by approving consequent measures to combat shadow economy and securing the promise once given to entrepreneurs regarding the reduction of labour tax. This is why it has been decided to reduce PIT from 24% to 23% on January 1st, 2015. Latvia is one of the rare European countries that reduces taxes, thereby contributing to the strengthening of competitiveness of Baltic States and the whole of the EU region,» – mentions FM in its report.

As for the fiscal policy, Latvia’s course has not changed and it is still planned to focus on securing long-term economic growth and responsible fiscal policy.

The government also plans to focus on matters of social security. This is why it is planned to allocate additional funds for the country’s healthcare system. Healthcare Ministry’s funding is planned to be increased by EUR 31.1 million in order to provide better availability of healthcare services in different regions, reduce queues and fees. It is also planned to increase wages of medical personnel.

In regard to improving the quality of education in Latvia, it is planned to increase the country’s education budget by EUR 31.4 million. The government has also reserved an additional EUR 3 million to help increase wages of teachers starting September 3rd, 2015. Additional funds have are planned to be used to contribute to the development of scientific activities in universities.

FM notes that the government has created an opportunity to increase funding for Transport Ministry, allocating an additional amount of EUR 32.6 million. This funding is intended for the maintenance and restoration of national roads and state grants in order to ensure affordable public transport services to Latvian residents.

The government also plans to provide Agriculture Ministry with an additional funding of EUR 33 million in order to secure additional direct payments to farmers in 2015.

Ref: 103.109.109.5235


Leave a reply

Lithuanian bishops: skipping fasting on February 16 this year is not a sin

In an unprecedented move, the Conference of Lithuanian Bishops, the governing body of the Lithuanian Catholic Church, said that meat dishes okay for the people of faith on February 16, which marks the 100-year anniversary of Lithuania's statehood and the Lent Friday, which is traditionally a day of fasting for religious Catholic people.

Coincidence? Votes from Harmony and UGF ensure Sudraba remains the head of Oligarchs case committee

On Thursday, 18 January, the majority of Saeima members voted against the proposal to dismiss Inguna Sudraba from the post of the head of parliamentary investigative committee in charge of the review of the infamous Oligarchs case.

Kaljulaid criticised over involvement of acclaimed, but unrestrained director in centennial reception

As Estonia readies for the presidential reception to honour the 100th anniversary of Estonia, its President Kersti Kaljulaid is being criticised in an open letter for trusting Tallinn’s NO99 theatre, whose director physically assaulted a female colleague.

22.1% of Latvia’s residents subjected to risk of poverty

In 2017, 425 thousand persons or 22.1 % of Latvia population were at risk of poverty in 2016 – 0.3 percentage points less than in 2015. Equivalent income of this part of the population were below 330 euros monthly.

LAAC: Latvia’s milk market can be sorted out by joining forces in exports

Latvian Association of Agricultural Cooperatives (LAAC) has received support and praise for the public discussion regarding rapid milk procurement price changes, which is something that has recently affected the majority of agricultural cooperatives. This has helped cooperatives band together in order to sort out the milk market. This idea came from the example set by grain producer cooperatives, which did the same thing fifteen years ago, as reported by the association’s representatives.

Forevers announces its decision to exit from Latvian Federation of Food Companies

Forevers meat processing company has decided to exit from Latvian Federation of Food Companies (LFFC). The contract between two parties will be terminated in January.

Saeima’s Oligarchs case investigative committee hastily approves final report

In spite of objections, grammatical errors, criticisms about lacking effort, as well as Inguna Sudraba’s unfit status to lead the committee, members decided to move the meeting from 11:00 to 08:00 and approve the final report in a rushed vote.

Removal of 1 and 2 euro cent coins from circulation suggested by Bank of Estonia

Estonian central bank is willing to follow the eurozone trend of limiting the circulation of euro 1-cent and 2-cent coins and in time to remove them entirely from circulation in the Baltic country.

Cert.lv: attacks on e-health system and LETA were likely ordered

Attacks on e-health system and LETA agency were likely ordered, said Cert.lv deputy manager Varis Teivāns in an interview to Rīta Panorāma programme of LTV.

As Catalan parliament reconvenes, it elects pro-independence speaker

The Catalan regional parliament has in its first sitting since its ousting and snap December election elected a separatist-minded politician as its Chairman, which indicates that the attempts to break the region away from Spain would continue.

Latvia’s National Armed forces receive new Harris tactical radio equipment

In 2017, Latvia received tactical military radios worth USD 10.5 million from American Harris Corporation. Procurement of radio equipment will further improve command function and help develop a lasting communication system with other NATO member states, as reported by Latvian Defence Ministry.

MEP: Europe continues strengthening its energy independence

«The European Parliament has voiced strong support towards Europe’s energy independence and moving its energy policy away from Russia’s monopoly by investing in energy efficiency and renewable energy resources,» said MEP Krišjānis Kariņš after the vote on Clean Energy Act’s first reading in Strasbourg.

Apple expected to pay additional 38 billion USD in taxes for money kept abroad

Motivated by the U.S. tax reform, Apple will pay about 38 billion U.S. dollars (31 billion euros) in tax on the roughly 250 billion dollars (204 billion euros) the computer technology firm keeps outside of its country of origin as it plans to focus more on its contribution to the American economy.

Latvian police commenced three criminal processes for contraband of drugs this year

In the first two weeks of 2018, State Revenue Service’s Customs Police commenced three criminal processes in regards to illegal drugs contraband in postal packages from Lithuania to Latvia.

Betsafe: To Latvia from the Heart has laughable chance of entering next Saeima

With declining ratings, Inguna Sudraba’s party To Latvia from The Heart has been left with laughable chances of entering the next Saeima, Betsafe bookmakers say.

EU Affairs Committee: EU Digital Single Market motivated Latvia to perform reforms

European Union’s Digital Single Market strategy offered new opportunities for Latvian businessmen to actively present their services in other member states. The strategy also served as an impulse for the business environment and state administration. The strategy motivates our government to walk the road of reformation more actively and clean up messes that have remained for a long time, said chairperson of Saeima’s European Affairs Committee Lolita Čigāne on Wednesday, 17 January.

Expert: Zhdanok’s decision to leave EP was carefully calculated to revive Latvian Russians Union

The decision made by member of the European Parliament (EP) and leader of Latvian Russians Union (LRU) Tatyana Zhdanok, in accordance with which she intends to leave the European Parliament to instead focus on LRU’s election campaign, was a carefully calculated step to reanimate the party, said dean of Social Sciences Faculty of the University of Latvia Juris Rozenvalds.

Maxima Latvia expects price decline up to 15% in 2018

Following Maxima Latvija’s decision to reduce prices for nearly 1,000 important goods, it is expected that a similar step will be made by other players in the industry. This could mean prices for everyday goods could decline by up to 15%, as BNN was informed by the company.

Latvia’s economy reaches highest peak since 2015

Residents’ mood has improved for most positions of the study. Residents were positive the most about ongoing changes for Latvia’s economy, the value of which has reached its peak since July 2015. In spite of optimistic changes, however, 30% of respondents are critical about ongoing economic changes in Latvia, according to results of the latest Baltic International Bank’s Latvian Barometer.

Riga exchange hopes for new securities issuers this year

There are hopes to see new Latvian businesses release shares on the stock market this year, says chairperson of Nasdaq Riga Daiga Auziņa-Melalksne.

Latvian universities to offer students an innovative grant system

To help develop students’ innovative and business abilities, Latvian Education and Science Ministry has developed a new student grant system, which will focus mainly on supporting innovative projects and research and further improve cooperation between universities and leading businesses to attract human resources, the ministry reports.

Russian sociologists fear closure, quit publishing election polls

Russian leading independent polling organisation Levada Center has stated it has quit releasing results of polls on the country’s spring presidential election citing concern that the authorities could close it down for what they see as meddling in politics.

Court maintains pledge on former LAR leader’s bank accounts and owned property

Court has applied pledge status on property and bank accounts owned by Riga City Council member Mārtiņš Bondars to enforce EUR 15 million from him as part of Latvijas Krajbanka criminal case, as reported by TV3 News.

McDonald’s to use unrecycled packaging for 7 more years

World’s largest catering chain McDonalds has set the aim of ensuring that by 2025 all its packaging would be from either from recycled or renewable materials, which would be an increase current proportion of a half.

Saeima speaker: Judicial Affairs Council’s work should be more apparent

Work performed by the Judicial Affairs Council should be made more apparent, said Saeima speaker Ināra Mūrniece during her meeting with Supreme Court chairman Ivars Bičkovičs.

Would you be ready to boycott something in your life?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: