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Wednesday 24.05.2017 | Name days: Marlēna, Ilvija, Ziedone
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Latvian government approves next year’s budget plan

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn Tuesday, 29 September, Latvian government supported the budget project for 2016, which states that next year’s revenue may reach EUR 7.37 billion and expenses – EUR 7.65 billion.

Compared with 2015 plan, the new draft provides for an increase of revenue by EUR 114.2 million and a EUR 183.2 million increase in expenses.

GDP outlook for 2016 is set at EUR 26.13 billion.

The allowed general budget deficit is set at 1% of GDP.

Maximum state debt for the end of 2016 is set at EUR 10.1 billion. It has also been decided that the Finance Minister will be allowed to provide guarantees on behalf of the state worth EUR 35,956,620 in 2016. The general increase for state budget loans has been set at EUR 243,269,723.

Education and Science Ministry’s funding for study loans and coverage of study loans has been set at EUR 2,139,604.

The government has supported the proposal to divide up PIT revenue between the state and municipal budgets the following way: 80% to municipal budgets and 20% to state budget. PIT rate is 23%; taxpayers monthly tax-free allowance is EUR 85 and PIT benefits for dependants is EUR 165. Expected PIT revenue for municipal budgets is EUR 1.21 billion.

The government has also decided to support proposals to retain annual state budget grant for mandatory procurement component as part of Economy Ministry’s ‘Electrical energy consumer’s support’ at EUR 26.79 per MW.

On Wednesday, 30 September, the 2016 budget plan will be submitted to the Saeima.

Ref: 102.109.109.6373


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