Latvia’s consolidated budget posts surplus of EUR 358mn in Jan-Sep.

By bne IntelliNews September 24, 2013

According to the estimate by the State Treasury, by mid-September 2013 consolidated budget posted a surplus of LVL 251.2mn (EUR 357.5mn). Since the end of July a surplus of LVL 50mn was thus seen (vs. LVL 21.5mn surplus in June and LVL 32mn in July).

To compare, in Jan-Sep 2012 LVL 341mn consolidated budget surplus was posted. In H1/13 a surplus of LVL 165.6mn was estimated by the Treasury.

The data is based on cash-flow methodology, with numbers slightly higher than ESA’95 official calculations. Previously FinMin noted that slower economic growth has moderated the growth rate of tax intake in the beginning of the year.

Most recently, FinMin revised Latvia’s general government budget deficit target down to 1.1% of GDP, based on the latest estimates compliant with ESA’95 methodology. Previously the deficit target was 1.4% of GDP. FinMin attributed the downwards revision to positive dynamics of budget revenues in Q1/13, which grew by 12.3% y/y. Both tax income and transfers from European fund showed strong growth.

General government budget deficit in 2012 calculated according to the European System of Accounts ESA95 amounted to 1.2% of GDP or LVL 187.2mn (EUR 266.4mn). This was the fifth smallest budget deficit in GDP terms in EU, according to Eurostat. Deficit of 1.2% had beaten the target of 1.9% for 2012 (revised downwards twice from 2.5% to 2.1% to 1.9% throughout 2012). It was also better than FinMin’s expectations of 1.5% deficit.

To compare, in 2011, 2010 and 2009 consolidated budget deficit stood at 3.6%, 8.1%, and 9.8% of GDP respectively. In absolute terms budget deficit from 2009 to 2012 was cut almost 7-fold from LVL 1.28bn to LVL 187.2mn. General government debt as of end of 2012 amounted to LVL 6.309bn or 40.7% of GDP, up from 36.9% of GDP in 2009, but below 44.4% and 41.9% of GDP seen in 2010 and 2011, respectively.

Upon Latvian government's agreement with international lenders (IMF and EC), ESA 95 calculated budget deficit was not to exceed LVL 600mn or 8.5% of GDP in 2010, 6.5% of GDP in 2011, and 2.5%-3% of GDP in 2012. The dynamics of the general budget deficit during the austerity program were consistently outperforming these targets.

Related Articles

Lithuania calls for further committments from Gazprom to end EU anti-trust case

Gazprom’s commitments to lessen the impact of its dominant position as a supplier of gas to Lithuania and other CEE countries are not sufficient and the European Commission should ensure they are ... more

Russia offers Latvian port a slice of the Nord Stream pie

The Latvian port of Ventspils has been asked to store and handle delivery of pipes for Nord Stream 2, the controversial Russian gas pipeline project, the chairman of the port said on April 20. The ... more

Latvia opens its gas market as it seizes control from Russia

The Latvian gas market opened up to liberalisation on April 3 following entry into force of a number of legal changes. Riga has fought hard to end control of the gas transmission and storage ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss