Latvian government adopts 2022 budget

  • 2021-10-12
  • LETA/TBT Staff

RIGA - The Latvian government on Tuesday supported the bill on the 2022 budget.

Revenue in the 2022 consolidated budget is planned at EUR 10.6 billion and expenditure - at EUR 12.4 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.

Compared to 2021 budget, the 2022 budget provides for an increase of revenue by EUR 1.078 billion and increase of expenditure by EUR 1.642 billion.

The government basic budget revenue is projected at EUR 7.47 billion and expenditure at EUR 9.263 billion. Revenue to the government special budget are projected at EUR 3.438 billion and expenditure at EUR 3.387 billion.

Value added tax rate will be reduced from 12 percent to 5 percent for books and periodicals.

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.