Late adoption of 2019 budget has caused no direct side effects - Reirs

RIGA - The delayed adoption of this year’s budget has not brought about direct side effects but has increased the feeling of insecurity, Finance Minister Janis Reirs (New Unity) said in an interview to LNT TV channel Wednesday.

“[The late adoption of the 2019 budget] has not caused direct side effects, but it has created the feeling of insecurity or uncertainty because the EUR 87 million allocation for healthcare, as well as the allocations earmarked for the law enforcement and judicial systems are being approved only now,” the minister said.

Reirs said that the final reading of Latvia’s 2019 budget in Saeima on Wednesday should not bring any surprises. “I hope there will not be any surprises” and the lawmakers will not add any more expenditures to this year’s budget, the minister said.

As reported, Saeima is due to hold the second and final reading of Latvia’s 2019 budget on Wednesday.

This year revenue in the government consolidated budget is 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.