On August 24, Latvia’s Cabinet of Ministers reviewed a report prepared by the Ministry of Finance on the state base budget and state special budget. Consolidated budget expenditures are estimated at EUR 11.886 billion.
For 2022 the ministry has estimated base budget expenditures at EUR 8.741 billion and for 2023 state base budget expenditures are estimated at EUR 8.568 billion. Expenditures have increased by EUR 668.1 million for 2022 and by EUR 732.3 million for 2023.
For 2024 the ministry has estimated budget expenditures at EUR 8.543 billion. Compared to 2023, expenditures will increase by EUR 706.5 million.
The Ministry of Finance explains that the most notable changes to the 2022 state budget base expenditures come from the EUR 104.9-million financing planned for measures against Covid-19, EUR 97.8 million for priority projects, EUR 90.9 million for state benefits for families, as well as EUR 14.5 million to enhance control on the Latvian-Belarusian border.
The increase of 2022 state budget expenditures is also influenced by the planned co-financing of EUR 316.8 million for the EU Recovery Fund’s projects.
EUR 22.4 million is planned as financing for cooperation projects of the Ministry of Education and Science.
Another EUR 10.9 million is planned for the Ministry of Transport railway project Rail Baltica.
Expenditures of the state special budget for 2022 are planned at EUR 3.387 billion, for 2023 expenditures at EUR 3.541 billion and for 2024 expenditures are planned at EUR 3.772 billion. Budget expenditures for 2022 are increased by EUR 160.9 million, for 2023 expenditures by EUR 159.9 million and for 2024 by EUR 390.6 million when compared to 2023.
State special budget expenditures for 2022 consist of additional financing of EUR 77.2 million for old age pensions, EUR 56.6 million for disease benefits, EUR 15.4 million for unemployment benefits and EUR 7.1 million for parent benefits.
Corrections to the special state budget are made, considering forecasts for state social insurance contributions, the average gross monthly wages in the country, labour market indexes, monthly consumer price indexes and other factors. (BNN/Business World Magazine)
