bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 20.06.2019 | Name days: Rasa, Rasma, Maira
LatviaLatvia

Latvian government supports 2019 budget project

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn Monday, 15 October, Latvia’s Cabinet of Ministers supported Finance Ministry’s prepared 2019 budget plan project. State budget revenue in 2019 is planned at EUR 9.178 billion, which is EUR 217 million more when compared to 2018, whereas state budget expenditures are planned at EUR 9.205 billion, which is EUR 96 million more when compared to 2018.

The budget plan’s resources for defence are planned at 2% of GDP. A major increase of funding is planned for healthcare – EUR 154 million.

The budget also includes wage increase for medical personnel, as well as funding for cancellation of extended work hours. Additional funding is planned for pensions – EUR 10 million.

National funding of EUR 236.1 million is planned to be allocated for roads in 2019. Additional funding from EU funds will also be available. Medium-term budget plan also includes the plan to increase minimal wages, which commenced 1 September 2018. This portion of the plan will have financial impact of EUR 17 million in 2019.

Finance Ministry admits that the budget plan project covers the state budget, municipal budgets and the budgets of many state companies.

Municipalities are provided with the option to receive loans from the state budget to implement investment projects at low interest rates. Tax revenue for municipalities in 2019 is planned at 19.6% of total state revenue, which ensures significant revenue growth in a medium-term perspective.

As a result of review of expenditures in 2018, funding was found worth EUR 51.4 million to finance different activities of Latvian ministries. The ministry adds that measures commenced in ICT and real estate sectors will yield a positive effect in a medium-term perspective.

The budget plan also provides for the formation of a reserve of 0.1% of GDP (EUR 31 million). The overall government deficit is planned to be reduced to 0.7% of GDP. This will ensure Latvia’s compliance with fiscal discipline requirements. The state debt is planned at 38.5% of GDP (84.1% – average in Eurozone).

According to the ministry, Latvia’s GDP is set to grow 4.2% this year, which is 0.2 percentage points more than was planned at the beginning of the year. A more rapid economic growth was secured by rapid growth in the first half of the year, which was secured by increase of investments and exports.

Finance Ministry adds that investment growth has calmed down. Economic growth rates will be slower in 2019-2021 and will stabilize around 3%, which is close to the economic growth potential.

Average inflation in 2018 and 2019 is planned at 2.5%, which is 0.3 percentage points lower when compared to what was planned at the beginning of the year.

According to the ministry, more rapid economic growth means a decline of unemployment as well. In 2018, average unemployment level is estimated to be 7.7%. Next year’s level is estimated around 7.4%. The number of employed residents is also expected to increase: by 1.2% in 2018 and 0.1% in 2019.

A slightly faster increase is also expected for average wages in 2018 – 8.3%, with average monthly wage reaching EUR 1.003. Compared to previous predictions, wage outlook for 2018 has been increased 0.3 percentage points.

Considering the macroeconomic development scenario reported in September 2018, as well as budget completion in the first eight months of 2018, Finance Ministry believes overall government budget deficit will be 0.8% of GDP in 2018.

The ministry explains that the lower budget deficit is ensured by larger tax revenue than previously planned.

«When preparing the outlook for 2019, we took into account the new macroeconomic development scenario, as well as budget completion in the first eight months of 2018. Compared to the previous outlook, we expect higher tax revenue for excise tax and PIT in 2019. We also expect higher PIT revenue from dividends paid for revenue left from previous years,» the ministry notes.


Leave a reply

Latvia readying 15% alcohol excise rate cut in tit for tat to Estonia

In a measure seen in Riga as provoked unexpectedly by Estonian legislators, the Latvian Saeima has passed in the first reading the plan to cut the alcohol excise duty on liquor by 15%.

Estonian military surveillance plan rejected by Kaljulaid to reach court

Rejected as unconstitutional by the Estonian President, Kersti Kaljulaid, the plan to expand military surveillance in the country will reach the Estonian Supreme Court in autumn. the President and the Estonian parliament disagree on the provisions of the amended Defence Forces Organisation Law.

Latvia rejects Unmarried Couple’s Law intended for cohabiting partners

The Latvian parliament has on Thursday, June 20, rejected the draft Unmarried Couple’s Law proposed by MPs from the governing New Unity and coalition member Development/For! for the protection of cohabitating unmarried partners.

Lithuania not to change alcohol excise yet, while Latvia readies reaction to Estonia’s -25%

The much-praised unity of the Baltics in the 1990s has fallen through multiple times over the countries’ independent history and the last blow to it came this month from Estonia, which unilaterally made a 25 percent cut on alcohol excise tax in bid to lure alcoholic beverage lovers from neighbouring countries.

Swedbank not leaving Baltics, says newly appointed chairman Persson

Swedbank shareholders have elected former Swedish Prime Minister Göran Persson as its new chairman. He has started off by dismissing the possibility of leaving Baltic markets amid investigations.

Rejecting access to state secrets to Latvian MP, body points to his «dishonesty»

Rejecting access to Latvian state secrets to controversial MP Aldis Gobzems, the Latvian Constitution Protection Bureau has pointed to hid «dishonesty» and a possible legal violation, according to the decision shown on Facebook by the lawmaker himself.

Latvian energy giant’s council suspended; members satisfied with accomplishments

The council of the Latvian state energy giant AS Latvenergo has been removed by Economy Minister over lack of productivity. Yet its members have stated they were satisfied with the achievements of their work.

Researchers: Eastern Latvian cities promote Russia’s influence in Latvia

Despite Latvia’s difficult relations with Russia, two major Latvian cities engage in initiatives adhering to the interests of the eastern neighbour, researchers of the Centre for East European Policy Studies have found in a new, revealing study.

Experts on Latvia’s compensations to Jewish community: Good idea poorly developed

The Latvian draft law on paying compensations to the Latvian Jewish community for the real estate confiscated by Nazi and Communist occupation powers embodies a good idea, yet the requested sum and articles of law lack clear substantiation, legal experts commented to BNN.

Hollywood filmmaking in Tallinn? Estonia considering EUR 5 million support

The Estonian government is reviewing a request from film director Christopher Nolan, renown for Hollywood thriller blockbusters, to support with five million euros a film currently shot in Tallinn. Estonian state movie budget for 2018 is two million euros.

Annual inflation in Latvia, Estonia among EU's highest

Data on the annual inflation rate in the European Union showed that price rise in Latvia was 3.5%, followed by Estonia with 3.1%, Eurostat reports.

Nausėda’s pick for doctor seen as éminence grise of Lithuanian health care

Lithuanian President-elect Gitanas Nausėda has chosen Remigijus Žaliūnas as his personal doctor. The pick is seen as controversial by LRT broadcaster over Žaliūnas’ contacts with both business heavyweights and policy makers.

Latvian Prime Minister not to bend to budget appetite of extra EUR 600 million

For the Latvian state budget of 2020, the ministries have submitted requests exceeding the spending plans by 600 million euros, said Latvian Prime Minister Krišjānis Kariņš to Rīta Panorāma TV programme. The PM also expressed determination not to raise taxes.

Availability of cancer diagnostics in Latvia worsening critically, surgeon warns

The availability of cancer diagnostics and chemotherapy in Latvia is worsening critically, warned the head of the Oncology Clinic of the Riga Eastern University Hospital, surgeon Armands Sīviņš.

Take two: Trump starts re-election campaign for U.S. President

U.S. President Donald Trump has officially opened his bid to be re-elected to the post in the 2020 election. The new campaign slogan is: «Keep America great». There are 39 other candidates competing in the race to White House.

Ban on anonymous comments suggested after Baltic Pride in Vilnius

To stem offensive comments on Lithuanian internet media, member of the Seimas Vytautas Kernagis has suggested banning such anonymous expression of opinion, yet European case law upholds the right of authorless speech online, LRT reports.

Plaster to education: Latvian teachers’ pay increased for 2019 alone

The Latvian government has approved the rise of the lowest pay rate of teachers, but funds for this purpose have been earmarked only for the second half of 2019.

Pay cut to major Latvian port board members approved by government

The salary of the board members of major Latvian ports has been cut by a quarter in a decision by the Latvian Cabinet of Ministers.

Nordea bank searched in Denmark over money laundering allegations

The Danish offices of the Scandinavian Nordea Bank have been searched by police as a probe in alleged money laundering is being conducted, Bloomberg reports.

Fire Service: Violations in new Ventspils music school prevented

In the newly-built Ventspils Musical High School and concert hall Latvija, which had problems with fire safety, the Latvian State and Fire Rescue Service has found in a repeated inspection that the violations have been fixed.

UN: 2.2 billion people globally still lack safe drinking water

A report by the United Nations Children’s Fund and the World Health Organisation has found in study that 1 in 3 people or 2.2 billion people around the world lack safely-managed drinking water, while 673 million people practice open defecation.

Key owner of pharmaceutical giant Olainfarm changes board member over distrust

In Olmafarm, the largest owner of the Latvian pharmaceutical giant Olainfarm, changes in the management board have taken place over no-confidence, according to a decision of the majority of the co-heirs of Olmafarm seen by LETA news agency.

Lithuanian experts: No way of stopping coming nuclear power plant of Belarus

Options that could stop the building of a nuclear power plant in Belarus have been exhausted, experts in neighbouring Lithuania have said to its public media.

Latvia pushing for joint stance of Baltic-Nordic MPs on security policy

Ahead of the Parliamentary Assembly of the Organisation of Security and Cooperation in Europe, it is key for the legislators of the eight Baltic-Nordic states to have a common position on security policy, said MP Inese Ikstena, head of the Latvian delegation.

Latvian coalition undertakes to rise teacher salaries over reform

Recognising that education reforms in Latvia have been initiated, the ruling coalition has pledged to pass the decision to allocate funds to rising teacher salaries, as indicated by Latvian Prime Minister Krišjānis Kariņš. Kariņš stated that the coalition parties have established that «reforms envisaged by Minister of Education Ilga Šupilinska have been initiated».

Newest comments