Budget, Financial Services, Latvia, Legislation

The total consolidated budget revenue next year is projected to reach LVL 4.736 billion, and expenditures LVL 5.417 billion. The planned revenue is approximately 4% smaller than this year, whereas budget spending is to reduce by about 7%, writes LETA.

The total consolidated budget deficit is planned at LVL 681.5 million or 7.6% of gross domestic product next year.

The state consolidated budget revenue is planned at LVL 3.862 billion or approximately 4% smaller than this year. Budget expenditure, on the other hand, is planned to be LVL 4.386 billion, or around six% smaller, compared with 2009.

The state consolidated budget deficit will amount to LVL 524 million or 4.4% of the GDP, taking in consideration calculations based on money flow.

The state 2010 budget has been consolidated by LVL 500 million, in line with the international lenders' demands: expenditure has been curbed by LVL 244.5 million, and additional LVL 255.5 million revenues are planned to be obtained in form of tax and non-tax revenues.

According to the Finance Ministry's estimates, Latvia's GDP will decrease 4% next year, consumer prices will fall 3.7%, whereas registered unemployment rate will reach 13.8%.

Export of goods and services next year will decrease by 1.5%. In 2011, Latvia's exports are hoped to increase 5%, and 5.6% in 2012. On the other hand, import of goods and services next year is projected to drop 9.7%, followed by 2.6% and 5.2% increases in 2011 and 2012 respectively.

The government has called the 2010 state budget the most difficult one since the restoration of independence of Latvia in 1991.

LETA also reported, the 2010 state budget has been harshly criticized by society; trade unions, Latvian Employers' Confederation, Union of Latvian Local Governments and business organizations refused to support the budget bill, calling it "anti-social".