European Commission approves of Latvia's budget project for 2019

BRUSSELS - The European Commission has coordinated and approved Latvia's budget project, as it overall is in accordance with the Stability and Growth Pact.

European Commission Vice President and Commissioner for Social Dialogue Valdis Dombrovskis (New Unity) told LETA that the budget project's deficit is even slightly lower than the budget plan submitted in October by the then Maris Kucinskis (Greens/Farmers) government.

At the same time, additional financing has been earmarked to increase the salaries of medics, as well as judicial and interior system workers, he added.

He explained that the possibility to increase spending is being ensured by rapid economic growth, as well as additional tax revenue.

As reported, the Cabinet of Ministers on Tuesday approved draft law on Latvia’s budget for 2019 and decided to sent it to Saeima for adoption.

In 2019, revenue in the government consolidated budget are planned at EUR 9.2 billion and expenditure at EUR 9.4 billion. In the government basic budget, revenue is planned at EUR 6.4 billion and expenditure at EUR 6.8 billion. In the government special budget, revenue is planned at EUR 3 billion and expenditure at EUR 2.8 billion.

In 2019, the general government consolidated budget is expected to run a deficit of 0.5 percent of GDP. Latvia’s GDP, meanwhile, is projected to grow 3 percent this year.