Latviski English По-русски
Wednesday 19.09.2018 | Name days: Verners, Muntis

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

Russian plane near Syria shot down by ally targeting Israeli planes

The Russian military plane, which went missing on Monday, has been shot down by its ally Syria targeting Israel's war planes and the number of servicemen lost in the event has been corrected from 14 to 15, the Russian government stated.

Latvian border guards find more than 140 kg of hashish in a car

On 16 September, Latvian State Border Guard detained a 1991-born man and his car at Grebnev border checkpoint. A secret compartment containing 145.3 kg of narcotic substances was found in his car during a routine inspection, as reported by State Border Guard.

EU suspects German car-makers of colluding against cleaner technology

EU competition watchdogs are probing if German automotive giants have colluded to restrict the development of clean emission technology.

Number of job vacancies in Latvia up 7.8 thousand in Q2 2018

In Q2 2018 there were 24.5 thousand job vacancies in Latvia, which is 7.8 thousand vacancies or 46.6 % more than in Q2 2017. In public sector there were 7.2 thousand and in private sector 17.3 thousand job vacancies.

Latvian government desperate to resolve the growing piles of used tires problem

Latvian government has supported Environment Protection and Regional Development Ministry’s prepared report ‘On maintenance of used tires’. This report includes proposals for measures to help resolve the matter regarding speeding up recycling and regeneration rates, as well as the no less important matter of maintenance of used tires.

Cargo volumes handled by Latvian ports remain stable in first half-year of 2018

Latvian ports transshipped 43.468 million tonnes of cargoes in the first eight months of 2018, which is 0.9% more than in the same period of last year. According to data from Transport Ministry, cargo turnover’s negative balance continues declining at Ventspils port, where 13.274 million tonnes of cargoes were transshipped in the first eight months, which is a drop of 11.9%.

airBaltic carried 18% more passengers in summer

Latvian airline airBaltic has carried 2,770,047 more passengers to destinations in Europe, Scandinavia, Russia, CIS and the Middle East in the first eight months of 2018, BNN was told by the company.

Ukrainian workers in Lithuania gradually fill gap left by Lithuanian exodus

Companies in Lithuania, in particular operating in construction, logistics and retail chains, are increasingly inviting workers from Ukraine and Belarus to fill the worker shortage of Lithuanians moving to richer countries.

ABLV Bank assets worth EUR 47.14 million recovered in August

Assets worth EUR 47.13 million were recovered from the liquidated ABLV Bank in August, which is 2.2 times more than a month prior, according to the account published in Latvian Herald.

Estonia bank watchdog points to Denmark's responsibility over Danske

As to the allegations of doubtful billions flowing via the Estonia branch of Danske Bank, the Estonian watchdog of financial institutions has noted that the Danish supervisory authority was responsible for the lender's risk control.

Liepaja City Council vice-chairman steps down

On Monday, 17 September, Liepaja City Council vice-chairman for tourism and investment affairs Ģirts Kronbergs announced his resignation.

Sixteen contenders apply for Rundale Castle Museum director’s post

A total of sixteen contenders have applied for participation in Latvian Culture Ministry’s announced open personnel selection process to find the next director of Rundale Castle Museum.

Russia: Military plane with 14 Russian soldiers has been lost near Syria

A Russian war plane with 14 servicemen on board has disappeared while over the Mediterranean Sea near the coast of Syria, Russia's Defence Ministry has stated.

Unity decides not to support UGF’s initiative for people’s elected president

Unity political party has no plans to support the amendments submitted by the Union of Greens and Farmers on people’s elected president, says Unity’s chairman Arvils Ašeradens.

U.S. to introduce more import tariffs on China produce

The U.S. government has announced imposing import duty tariffs on Chinese products worth USD 200 billion (EUR 171 billion), in a trade dispute between the world's two biggest economies.

Latvian parties’ pre-election promotion costs reach EUR 1.64 million

Three weeks prior to Saeima elections, expenses of Latvian political parties on promotion have reached EUR 1,638,393. Concord remains in the least expense-wise, according to information from Corruption Prevention and Combating Bureau.

Internal Security Bureau criticizes State Police for insufficient corruption prevention

Internal Security Bureau has detained several police officers under suspicion of bribery. Because of that, the bureau has voiced criticism to the management of Latvia’s State Bureau for insufficient corruption prevention measures.

Full transition to electronic documents in construction sector planned for 2019

During a meeting on 17 September, Latvia’s Cabinet of Ministers supported the amendments to Construction Law developed by Economy Ministry. These amendments provide for a full transition to electronic document handling in the country’s construction sector starting from 2019. This includes submission, decision-making processes and coordination – all of these processes will be performed using Construction Information System, as confirmed by Economy Ministry.

MPC permit revoked for liquidated Jurmala-based M7 Energy

Latvia’s Economy Ministry has made a decision to revoke the permit that allows selling produced electrical energy within mandatory procurement component system from SIA M7 Energy (previous name SIA KSER) CHP plant in Jurmala.

U.S. looking into Danske Bank operations in Estonia

Danske Bank, the leading bank in Denmark, is being investigated by U.S. authorities in relation to alleged money laundering from Russia involving Danske's Estonia branch, American media report.

Nearly 80,000 people have left Riga to live elsewhere in last seven years

In the past seven years, 78,692 people have left Riga to live in other countries or elsewhere in Latvia, according to data from the Central Statistical Bureau of Latvia.

Estonia's free rural bus rides result in passenger boom

Rural bus lines in the majority of Estonian counties have been offering free trips since early July, and in August an increase of 10,000 more rides was observed, resulting in frequently overcrowded buses.

NP: Riga municipality plans to adopt EUR 5 entry fee to city’s centre

A EUR 5 entry fee to Riga’s centre may be a solution Riga municipality has picked to help solve possible traffic congestion problem that is expected to appear in 2020, when it is planned commence construction of Rail Baltica railway. Because of that, several major streets will be closed down for traffic, according to information from Nekā personīga programme.

State Chancellery: no attempts to influence elections from abroad have been observed

Compared to the attempts to influence election results in other countries, no active attempts to influence 13th Saeima elections have been observed so far, said State Chancellery acting director for prevention of hybrid threats Kaspars Ozoliņš.

Switzerland urges Russia to quit violating law, spying in its territory

Switzerland's foreign ministry has urged Russia to stop illegal activities on its territory after three suspected spying cases have emerged in the country in 2018.