Saeima adopts 2022 budget with EUR 12.4 billion in expenditure

RIGA - The Saeima today adopted the 2022 budget in the final reading with EUR 10.6 billion in revenue and EUR 12.4 billion in expenditure.

The bill on 2022 budget was adopted with 52 votes to 37.

The Saeima started work on the 2022 budget on October 15. This is the second budget in Latvia's history adopted in a partly remote regime, using the e-Saeima platform.

The length of debates had been reduced from five and two minutes to two and one minutes per lawmaker.

As many as 232 proposals were received for the final reading of the bill.

Consolidated revenue is planned at EUR 10.6 billion, while expenditure is projected at EUR 12.4 billion. Compared to 2021 budget, revenue grows by EUR 1.078 billion and expenditure by EUR 1.642 billion.

Revenue to the basic government budget are planned at EUR 7.47 billion and expenditure at EUR 9.263 billion.

Significant funding in next year's budget is earmarked for increase of wages for medics, teachers and interior sector employees. Additional means have been earmarked for national security measures and other significant priority measures.

One of the main priorities is reducing laborforce tax burden and improving competitiveness of companies. EUR 93.8 million have been earmarked to increase the maximum differentiated non-taxable minimum income and non-taxable minimum income for pensioners to EUR 350 as of January 1 and EUR 500 as of July 1.

The government special social insurance budget is projected to have EUR 3.438 billion in revenue and EUR 3.387 billion in expenditure.

According to the medium term macroeconomic development scenario, Latvia's GDP growth will reach 3.7 percent in 2021, 5 percent in 2022, 3.5 percent in 2023, and 3.4 percent in 2024.

The average annual inflation is planned at 2 percent in 2021, 2.4 percent in 2022, 2 percent in 2023 and 2024.