Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.
In July, the minister predicted the country’s fiscal space might be slightly above EUR 80 million. She promised to provide precise numbers in August.
On August 22, the Cabinet of Ministers will begin viewing matters associated with the next year’s and medium-term budget.
It should be noted that the government will also review Finance Ministry’s four informative reports – on macroeconomic indexes, revenue and general government budget balance outlooks for 2018-2020, budget cost review for 2018, 2019 and 2020, fiscal risk declaration and state budget priorities in 2018, 2019 and 2020.
The fiscal space for 2018 will also become known after the Cabinet of Ministers meeting. According to Reizniece-Ozola, it may be around EUR 60 million.
Estimates presented by Finance Ministry this July show that fiscal space would be EUR 81.2 million in 2018, EUR 19.9 million in 2019 and EUR 311.8 million in 2020.
Such a fluctuant fiscal space growth is explained with the plan to reform corporate income tax in 2018, which is expected to bring more than EUR 100 million for the state budget in 2019. The rapid growth of fiscal space in 2020 is explained with a significant rise of economic growth.
Ministries want nearly EUR 760 million for budget priorities for 2018. (BNN/Business World Magazine)
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