The 2019 state budget will not have free fiscal space, said chairman of Fiscal Discipline Council (FDC) Janis Platais.
He mentioned that everything that was possible to promise had been promised. Because of that, the budget has no free funds.
“If plans come up to increase funding somewhere, it will be necessary to reduce it someplace else,” added Platais.
Revenue of Latvia’s budget for 2018 is planned at EUR 8.75 billion. Total expenditures of the state budget are at EUR 8.95 billion. The largest funding increase is planned for healthcare. Budget of the country’s defense sector will reach 2% of GDP.
Maximum state debt at the end of 2018 is planned to be EUR 10.25 billion. Finance Ministry will be able to provide guarantees on behalf of the state worth EUR 35,956,620. The ministry will also be able to clear state loans worth EUR 40,897,907 to liquidated businesses or commercial associations.
GDP outlook for 2018 is set at EUR 28,359 billion. This year’s allowed general government deficit will be 1% of GDP. (BNN/Business World Magazine)