bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 22.05.2017 | Name days: Emīlija
LatviaLatvia

Latvian Saeima approves country’s budget of 2016

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn Monday, 30 November, the Saeima approved the state budget of 2016 in the final reading. This budget states revenue could grow to approximately EUR 7.4 billion and expenditure – to EUR 7.69 billion.

61 deputies voted in favour of the budget and 34 voted against. In total, the Saeima meeting lasted for 11 hours. During this whole time deputies were holding debates and voicing proposals.

Compared with 2015, it is planned to increase revenue by EUR 148 million and expenditure by nearly EUR 215 million, as reported by Finance Ministry’s parliamentary secretary Arvils Aseradens.

Multiple proposals from deputies were supported in the budget plan. More than EUR 10 million will be allocated for them. The total worth of budget funds requested by deputies for their proposals reached EUR 263 million.

GDP prediction for 2016 has been set at EUR 26.13 billion. The allowed deficit of the general state budget has been set at 1% of GDP. Maximum state debt for the end of 2016 has been set at EUR 10.1 billion.

It has also been established that the Finance Minister will be allowed to provide guarantees worth EUR 35,956,620 on behalf of the state in 2016.

It is also planned to increase wages of the Prime Minister, ministers, parliamentary secretaries, leaders of Saeima factions and committees and the ombudsman.

It is planned to maintain PIT at 23% next year. Tax benefits for dependants will be increased from the current EUR 165 to EUR 175. However, tax benefits will no longer apply to persons who have reached adulthood and people of working age.

Starting from 2017, it is planned to set up mandatory minimal state social security payments from all working people, including employees of micro-enterprises. Previously it was planned to apply changes to the micro-enterprise tax model. However, deputies have decided to keep the current tax rate of 9% for micro-enterprises whose annual turnover does not exceed EUR 100,000.

It is planned to increase excise tax for petrol and diesel fuel, alcoholic drinks and tobacco products next year. Other tax increases will be applied to light transports and gambling.

It is also planned to adopt solidarity tax in Latvia. It will be applied to employed people and self-employed people whose annual income exceeds the maximum rate of annual state social insurance fees – EUR 48,600. Tax revenue from this is planned to be added to the state budget.

Changes are also planned for VAT application. Starting from 1 July, residential home management services will be applied with 21% VAT. In order to combat VAT defrauding, amendments provide for the introduction of VAT reverse payment model for procurements of mobile phones, tablets, laptops, microprocessors and central processor blocs.

Banks and payment service providers are planned to be made obligated to submit information to State Revenue Service about suspicious transactions of Latvian residents in the field of taxes. It is planned that these changes will come into force 1 April 2016.

Additional funding is planned to be allocated for Latvia’s National Armed Forces, Zemessardze and state cyber defence. Additional funding is also planned for police officers, rescuers and prison administration workers to increase their wages. More money will also be allocated for the State Border guard to strengthen border control.

Additional funding will also be provided to healthcare, including EUR 10 million for the increase of wages of doctors and medical personnel. More money will also be allocated for road management and restoration.

Parliamentarians have also agreed to allocate EUR 300,000 to the World Bank in order to finance research of Latvia’s tax system.

Ref: 102.109.109.4872


Leave a reply

Experts: Rail Baltica – connection that benefits everyone

The essence of Rail Baltica project is not combating the trends currently present in the world, but rather using them as an advantage, says advisor to the Bank of Latvia Andris Strazds. He adds that more and more economic and social development is centered in large and urban city centres.

Latvian companies ahead of neighbours in organization of business trips

Latvian businesses are more progressive in the organization of business trips than Lithuania. They do, however, spend a lot of money on planning and organizing of those trips. In addition, they also use inefficient financing methods – 20% of employees are forced to pre-finance their business trips from their own pockets, according to results of an international study.

Riga Eastern Clinical Hospital to identify patients using fingerprint data

Riga Eastern Clinical Hospital has introduced biometric data identification system that will be used to identify patients using fingerprint data, BNN was informed by the hospital.

FDC: micro-enterprise tax has created serious defects

The micro-enterprise tax has created serious defects for Latvia’s tax system, said Fiscal Discipline Council chairman Janis Platais in an interview to Latvijas Avīze.

Microsoft software licences cost Estonia millions each year

Estonian ministries and their subordinated institutions pay a total of under five million euros each year in Microsoft software licence fees.

Latvia’s unemployment rate was 9.4% in Q1 2017

In Q1 2017 the Latvian unemployment rate constituted 9.4 %. Compared to the previous quarter, the unemployment rate increased by 0.1 percentage points, whereas, compared to the same period of the year before, the rate reduced by 0.9 percentage points.

Pension expert: how far can index funds root themselves in Latvian pension plans?

Latvian pension plan clients can still pick existing pension plans with sufficiently flexible deposit policy and possibilities to receive consultations. It should be added, however, that pension plans based on index funds can find clients in Latvia for whom low-price guarantees is important the most, Nordea Pensions Latvia board member Ilya Arefjevs predicts.

Latvian Defence Ministry plans the largest tendering process in country’s history

This summer, Latvian Defence Ministry plans to announce the largest tendering procedure in the history of Latvia’s army. It is planned to procure heavy vehicles to transport armoured vehicles and troops. The total amount for the next ten years may reach EUR 200 million, as reported by Nekā personīga.

Study: engaging in business improves satisfaction with life

It has been concluded that psychological aspects are far more important than financial aspects in business operations – stability, family support, exchange of experience and realization of ideas are important for emerging businessmen, as concluded in a study performed by Altum.

Following use of EU funds, demand for loans increases in municipalities

Demand for loans from the State Treasury has increased after use of EU funds became more active, said Kaspars Abolins, chief of State Treasury, in an interview.

Swiss voters decide to move away from nuclear energy

Switzerland has decided to quit nuclear power stations and opt for renewable energy, show the results of a referendum held on Sunday, May 21, where 58% voters backed phasing out nuclear power.

Child vaccination made mandatory in Italy

Reacting to lower child protection against measles, the government of Italy has decided to make vaccination against 12 illnesses mandatory for children before they start going to state schools.

Deputies to decide on prohibiting gambling in Riga’s historic centre

On Monday, 22 May, deputies will discuss the matter on sorting out Riga’s historic centre. It is stated in new territorial plans that it will be prohibited for gambling halls to be located in this area.

Week in Lithuania. Lithuania to start paying child money in 2018

Lithuanian Prime Minister Saulius Skvernelis says that the government will follow up on its plan to next year start paying a monthly benefit for each child regardless of their parents' income, but adds that the state cannot afford to pay more than 30 to 50 euros in so-called «child money».

BNN summary of the week: problems with state financial accounts Baltics to promote healthy eating

BNN offers a summary of this week’s topical news in a variety of categories: Business; Future; Decline; Truth and Growth.

Specialists: noxious smoke from the fire claims more lives than the flames

The biggest damages during a fire are caused by flames, whereas noxious smoke from the fire kills more people, as noted by firefighting specialists.

FVS uncovered illegal sheep meat product trade

Inspecting an advertisement published on Facebook, Latvian Food and Veterinary Service uncovered illegal trade of sheep meat, canned meat storage and meat product distribution organized in an office building on Selpils Street, Riga, as reported by SRS.

Municipal elections 2017: what do people say?

With municipal elections gradually coming close, BNN offers a compilation of opinions provided by experts from different industries. Short answers consist of thoughts about specific municipalities that affect respondents directly, and municipal administrations in general – what people expect from officials and what changes they expect from elections.

Sweden decides to drop Wikileaks Assange arrest warrant

Prosecutors in Sweden have made the decision to quit the investigation in the case, where the founder of classified document leaking organisation Wikileaks, Julian Assange, is charged with rape and to drop the European arrest warrant on him.

Vejonis: we have yet to assess the use of funding in healthcare

In his interview to 900 seconds, Latvian President Raimonds Vejonis said the level of competent use of funding in the country’s healthcare sector has yet to be properly assessed.

ST: changes to Latvia’s credit rating associated with GDP growth

The possibility of Latvia’s credit rating growing is directly tied to gross domestic product growth, admits State Treasury manager Kaspars Abolins.

War games start in Estonian large-scale military drill with allied units

The military drill of the annual Estonian Defence Forces entitled Spring Storm has entered its key stage of a week of imitated battles, where units of other NATO member states and partner states are to take part.

EP tells member states to speed up refugee resettlement; especially children

European Union member states have to fulfil their promises to resettle asylum seekers from Greece and Italy. This especially applies to children, as stated in European Parliament’s resolution approved 19 May.

Total costs of reconstruction of Mezaparks Grand Stage may reach EUR 77 million

The estimated costs for the reconstruction of Mezaparks Grand Stage may reach EUR 77 million, as announced by Riga City Council’s Property Department Direction Olegs Baburovs at the first meeting of the Song and Dance Celebration Council.

Greece passes further austerity measures to receive next bailout payment

The parliament of Greece has adopted a further set of austerity measures, which are necessary to ensure the next bailout instalment worth several billion euros.

Newest comments