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Sunday 08.12.2019 | Name days: Gunārs, Vladimirs, Gunis

Latvian ministries issue requests for funding that reaches EUR 935.5 million

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In an attempt to finance priority tasks, Latvian ministries have made requests for funding worth a total of EUR 935.5 million from the 2020 state budget, EUR 1.82 billion from the 2021 state budget, and EUR 2.14 billion from the 2022 state budget, as detailed in Finance Ministry’s report.

The report was presented to the Cabinet of Ministers on Tuesday, 3 September.

A total of 334 priority tasks have been submitted for the next three-year period.

The largest request for funding has been submitted by Healthcare Ministry – EUR 279.4 million in 2020, EUR 445 million in 2021, and EUR 606.8 million.

Finance Ministry adds that a significant portion of Healthcare Ministry’s requested funding is intended to increase wages of healthcare workers. This task will require EUR 120.2 million in 2020, EUR 261.3 million in 2021, and EUR 406.8 million in 2022.

Education and Science Ministry’s request for funding is also financially considerable: EUR 128.7 million in 2020, EUR 185.4 million, and EUR 218.8 million in 2022.

Transport Ministry’s request for funding reaches EUR 123.2 million in 2020, EUR 132.8 million in 2021, and EUR 154.8 million in 2022.

Healthcare Ministry has stated three primary priorities: improvement of outpatient health care service’ accessibility requires EUR 17.2 million every year; improvement of daycare health services’ accessibility requires EUR 6 million every year. There is also the reduction of patient fees, which requires EUR 4.1 million every year.

Education and Science Ministry’s list of priorities mentions: to ensure sustainable funding for science and introduce new quality criteria, including introduction of international evaluation of innovations and operations of scientific institutions – this requires EUR 29.9 million in 2020, EUR 31.7 million in 2021, and EUR 33.6 million in 2022.

Education and Science Ministry also wants to secure funding increase for fundamental and study projects, which will require EUR 10 million in 2020 and EUR 15 million every year after.

Introduction of new study and student loan model, as well as student loan cancellation in the event of childbirth for both parents will require EUR 60 000 in 2020, EUR 300 000 in 2021 and EUR 700 000 in 2022.

Transport Ministry’s list of priorities includes coverage of losses from grants for public transport service providers, which will require EUR 18.7 million in 2020, EUR 8.5 million in 2021, and EUR 5.5 million in 2022.

Compensation of use of public railway infrastructure will require EUR 15.3 million in 2020, EUR 16.2 million in 2021, and EUR 17.2 million in 2022. The programme for reorganization of roads in 2014-2023 will require EUR 70.8 million in 2020, EUR 80.1 million in 2021, and EUR 117.4 million in 2022.

Finance Ministry has concluded that it is not possible to find sufficient funding for all priorities outlined by ministries. Nine ministries have submitted requests for funding from internal resources.

At the same time, Finance Ministry adds that Welfare Ministry’s submitted priority task for improvement of Social Rehabilitation Services is partially covered by Justice Ministry’s inter-industrial priority task for provision of social rehabilitation for violent adults.

Additionally, implementation of Healthcare Ministry’s priority plan On Narcotics Use and Distribution Enforcement in 2019-2020 overlaps with Interior Affairs Ministry’s plan of the same name.

Finance Ministry also reports that priority tasks submitted by ministries also includes additional jobs. Latvian ministries have requested creation of 806 additional jobs in 2020, 1 067 in 2021, and 1 149 in 2022.

It was previously reported that independent institutions have also requested additional funding of EUR 23.4 million from the 2020 state budget.

It is also reported that the 2020 state budget base expenditures are planned at EUR 7.13 billion. The 2021 state budget expenditures are planned at EUR 7.33 billion. When compared to 2019, expenditures will increase by EUR 39.4 million next year and EUR 35.7 million in 2021.

Base state budget expenditures in 2022 are estimated at EUR 7.49 billion, which is EUR 194.2 million more when compared to 2021.

Expenditures of the state special budget are calculated at EUR 2.98 billion for 2020, EUR 3.17 billion for 2021, and EUR 3.34 billion for 2022.

Additionally, information from Finance Ministry shows that the fiscal space for 2020 is negative EUR 25 million at the moment, which is largely due to adding public transport company Rīgas satiksme to the state deficit.

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