At the end of 2015, the general government budget deficit at the accounted for EUR 306.2 million or 1.3 % of the Gross Domestic Product, and general government consolidated gross debt was EUR 8 871.7 million or 36.4 % of GDP.
As compared to the operating cash flow data of the State Treasury, where general government consolidated budget deficit in 2015 was EUR 372.3 million, general government budget deficit calculated by the Central Statistical Bureau of Latvia in accordance with the methodological requirements of ESA 2010 is EUR 66.1 million or 0.3 percentage points of GDP less.
The most significant adjustments with positive effect on general government budget decreased on the following : adjustments for balancing foreign financial aid flow of EUR 120.8 million or 0.5 % of GDP; adjustments to obligations against creditors (data of the State Treasury) – by EUR 50.1 million or 0.2 % of GDP; adjustments for exclusion of transactions of derived financial instruments (data of the Treasury) – by EUR 42.6 million or 0.2 % of GDP; adjustments between accrued and paid interest (data of the Treasury) – by EUR 27.4 million or 0.1 % of GDP; adjustments of expenditure on construction of the Southern Bridge (data of Riga City Council) – by EUR 22.1 million or 0.1 % of GDP.
At the same time also adjustments with negative effect on general government budget have been made (deficit increase): adjustments due to purchase of the State Revenue Service building from a private partner (data of the Ministry of Finance and the State Real Estate Agency) – by EUR 67.8 million or 0.3% of GDP; adjustments for claims against debtors (data of the Treasury) – by EUR 65.1 million or 0.3 % of GDP; tax adjustments using the time adjustment method (data of the Ministry of Finance) – by EUR 22.2 million or 0.1 % of GDP; adjustments due to government investments in enterprises (data of the Treasury) – by EUR 21.5 million or 0.1 % of GDP; adjustments of lump sum payments for pension schemes (data of the State Social Insurance Agency) – by EUR 19.2 million or 0.1 % of GDP.
In 2015, as compared to 2014, general government deficit decreased by EUR 59.8 million or 0.3 percentage points of GDP. As contrasted with the budget deficit of EUR 51.0 million in 2014, last year the local government subsector showed a budget surplus of EUR 92.6 million. The positive changes were promoted by the increase in revenues from personal income tax, reduction of capital expenditure, and improved financial results of the enterprises reclassified to the government sector. Compared to 2014, central government subsector budget deficit in 2015 grew by EUR 31.5 million or 0.1% of GDP. Since expenditure on social benefits increased due to legislative amendments, the budget surplus of the social security fund subsector decreased by EUR 52.2 million or 0.2 percentage points of GDP.
General government consolidated gross debt in 2015 dropped by EUR 744.6 EUR as compared to 2014. Debt reduction can be explained with the repayment of the loan to the European Commission in the amount of EUR 1.2 billion.