Latviski English По-русски
Ceturtdiena 24.08.2017 | Name days: Boļeslavs, Bērtulis

Last year’s budget deficit in Latvia was 1.4% of GDP

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUGeneral government budget deficit at the end of 2014 comprised EUR 347 million or 1.4% of the Gross Domestic Product (GDP). The general government consolidated gross debt comprised EUR 9 633.2 million or 40.0 % of the GDP.

According to operating cash flow data of the Treasury in 2014 consolidated budget deficit was EUR 399.0 million. But budget deficit calculated by the CSB, according to ESA 2010 methodology, is EUR 52.0 million or 0.2% of GDP less, according to data compiled by Central Statistical Bureau.

Most significant adjustments with positive effect on the general government budget (reducing deficit) include: adjustment for balancing foreign financial aid flow (data of institutions involved in administration of foreign funds) – EUR 139.0 million or 0.6% of GDP; adjustments in claims against debtors (data of the Treasury) – by EUR 36.3 million or 0.2% of the GDP; tax adjustment using time adjustment method (information source – calculation of the Ministry of Finance) – by EUR 26.0 million or 0.1% of the GDP; adjustments in accrued contributions in the European Union (EU) budget (data of the Ministry of Finance) – EUR 23.7 million or 0.1% of GDP; adjustments for exclusion of transactions of derived financial instruments (data of the Treasury) – by EUR 22.2 million or 0.1% of the GDP; adjustment of expenditure on construction of the Southern Bridge (data of Riga town council) – EUR 20.8 million or 0.1% of GDP; adjustments for revenues from auctioning of emission allowances granted to Latvia (data of the Treasury) – by EUR 7.3 million or 0.03% of the GDP.

At the same time adjustment with negative effect to the general government budget was done, increasing deficit: a single capital transfer for complying with the obligations towards the European Bank for Reconstruction and Development (EBRD) (data of the Privatisation Agency) – EUR 88.2 million or 0.4% of GDP; adjustments to obligations against creditors (data of the Treasury) – by EUR 51.2 million or 0.2% of the GDP; adjustments in the use of non-budgetary funds for construction of the Latvian National Library (data of the Treasury) – by EUR 28.6 million or 0.1% of the GDP; adjustment of government investment in financial institutions and enterprises (data of the Treasury) – by EUR 16.8 million or 0.1% of the GDP; adjustment of lump sum payments for pension schemes (data of the State Social Insurance Agency) – by EUR 15.1 million or 0.1% of GDP; balance of enterprises of central and local governments reclassified to general government (CSB data) – EUR 14.1 million or 0.1% of the GDP; adjustments to impact of exchange rate fluctuations (data of the Treasury) – by EUR 9.6 million or 0.04% of the GDP.

In 2014 general government budget deficit, compared to 2013, rose by EUR 174.9 million or 0.7% of GDP. Evaluating sub-sectors of general government, it must be concluded that central government budget deficit enlarged significantly. If in 2013 revenues and expenditure of the central government budget were balanced, in 2014 the situation has changed. In 2014 increase of deficit was promoted by a single capital transfer for central government to comply with the obligations towards the EBRD, as well as rise of expenditure for remuneration and social benefits. But reduction of budget deficit has formed in both other general government sub-sectors, especially in sub-sector of social security fund. Starting with 2014, central government had begun financing pension subsidies in transfers, which are paid from social security fund. Reduction of budget deficit of sub-sectors of local governments was affected by rise in enlargement from personal income tax and practically unchanged level of expenditure.

In 2014, general government consolidated gross debt, compared to 2013, increased by EUR 757.3 million or 3.1% of GDP, mainly, due to the emission of two euro obligations to refinance borrowings from the European Commission carried out within the framework of international borrowing programme.


Leave a reply

Antane admits the situation with Latvia’s transit industry is tragic

Baltic Association – Transport and Logisics President Inga Antane describes the situation with Latvia’s transit industry as tragic. Cargo volume decline has been continuing since 2012. Antane also mentions that, looking at the recent past, 2016 was one of the worst in Latvia’s transit history, Antane said in an interview to RigaTV24.

Daugavpils party decides to leave coalition shared with Harmony

Daugavpils political party Mūsu partija, in which Rihards Eigims is the leader, has decided to leave the established coalition with Harmony in Daugavpils City Council.

Pulks: lunches in Riga’s kindergartens should be free

Riga City Council’s Unity faction leader Olafs Pulks has sent a letter to the city council’s Education, Culture and Sports Department’s Director Guntis Helmanis, asking him to immediately perform calculations and prepare proposals for Riga’s budget project for 2018 to secure free lunches for all children of the capital’s kindergartens.

Study: poor households will gain very little from the tax reform

Poor households will gain very little from the recently approved tax reform. There is a large number of unemployed people who will not the change with PIT, according to results of a study performed by Stockholm School of Economics in Riga and economic policy research centre Biceps.

Puce: either Kucinskis has a memory like a goldfish, or he doesn’t take his own words seriously

Political party For Latvia’s Development invites Prime Minister Maris Kucinskis to prove the promise he once gave to Latvian taxpayers to not change taxes in the next three years. This invitation was extended, considering information that was voiced at the 22 August meeting of the Cabinet of Ministers in relation to the search for ways to expand fiscal space.

Brivais vilnis: grey economy’s presence in fishing industry may be 40%

The total proportion of grey economy in Latvia’s fishing industry may be around 40%, says fish processing company Brivais vilnis chairman Arnolds Babris.

SRS: violations uncovered at restaurants mostly associated with illegal employment

Most of the violations uncovered by Latvian State Revenue Service during inspections at restaurants in Riga and Jurmala are associated with illegal employment and non-declaration of revenue, said SRS Director Ilze Cirule in an interview to Rīta Panorāma this morning 23 August.

Europe commemorates victims of Nazism and Stalinism

Nine years ago, MEP Inese Vaidere and four of her foreign colleagues accomplished that the European Parliament officially approved and issued a written declaration on declaring 23 August the Day of Remembrance of the Victims of European Stalinism and Nazism.

FCMC allows Latvian Central Depository to function as service provider

Finance and Capital Market Commission has decided to allow Latvian Central Depository to start providing services as a central securities depository starting from 18 September.

Without cheap labour, Liepaja prison construction may take a while

Because projects submitted by different construction companies for Liepaja prison exceed the funding that is available for the project, it is planned to cease the procurement. A new one will be announced soon, said Justice Ministry’s state secretary Raivis Kronbergs after a government meeting on Tuesday, 22 August.

Sudraba claims KNAB investigated oligarch case to the maximum extent

Investigators of the so-called oligarch case, which continue working at the Corruption Prevention and Combating Bureau, performed their work responsibly. Information leak during the investigation, on the other hand, had impacted the investigation considerably, said head of the parliamentary investigation committee Inguna Sudraba as a visit to KNAB.

Survey: 43% of internet store users purchase something once a month

Overall, Latvian consumers are satisfied with the purchases they made on internet stores. 65.3% of respondents believe internet stores are safe and reliable. 44.7% of respondents say they have never had any problems when shopping on the internet, according to results of a survey performed by

Government establishes prohibition to wear face-concealing clothes in public

On Tuesday, 22 August, Latvian government supported Justice Ministry’s proposed legislative draft on restrictions for face-concealing clothes, which prohibits residents from wearing such clothes in public places.

Experts explain why a teenager’s «I don’t know» is so dangerous

Most often we say things like «I don’t know» because we are afraid of making choices. Reaching their teens, youngsters become more independent, and the inability to make responsible decisions and say «no» can have serious consequences, says psychologist Sabine Vilcina and youth motivation programme «MOT. Izvēlies drosmi!» manager Ilze Paidere-Stake.

Traders: following VAT decline, prices of goods will decline as well

Latvian Association of Food Traders supports Agriculture Ministry’s proposal to reduce VAT rate for food and separate food product groups. Traders confirm that this step will also reduce food product prices in stores.

The most major risks and solutions for real estate purchase and rent with option to buy

To acquire housing in one’s property, often residents use rent with an option to buy. Sworn attorney Zanda Zaluma of Eversheds Sutherland Bitāns shares advice resident should keep in mind when signing real estate contracts.

Finance Minister: businessmen will be forced to pay larger wages

The current market situation shows that Latvia should speed up its education reform and think about attracting additional human resources from other countries, said Latvian Finance Minister Dana Reizniece-Ozola in an interview to Latvijas Radio.

Latvia to procure Stinger anti-air missile launchers

A mutual contract has been signed between Latvian Defence Ministry and Danish Defence Ministry for the procurement of anti-air missile launchers used by the Danish armed forces, as confirmed by Latvian Defence Ministry.

Oil prices and stock exchange indexes decline in Europe

On Monday, 21 August, oil prices declined. Exchange indexes in USA increased slightly, whereas exchange indexes in Europe declined because of concerns over the policy implemented by the administration of US President Donald Trump.

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.

Newest comments