Latvian state budget’s base expenditures are estimated at EUR 9.818 billion for 2023 and EUR 9.307 billion for 2024.
On Tuesday, 11 October, the Cabinet of Ministers reviewed the report compiled by the Ministry of Finance regarding the state base budget and state special budget for the year 2023, 2024 and 2025.
Compared to the previous year’s budget, estimates for expenditures were increased by EUR 1.03 billion for 2023 and EUR 513.5 million in 2024.
For 2025 state budget expenditures are estimated at EUR 9.266 billion, which is EUR 417.6 million more when compared to 2024.
Compared to the approved budget framework, corrections were added to long-term obligations, expenditures from charged services, foreign financial aid, expenditures towards EU policy tools and other foreign aid projects, their implementation and schedules, as well as expenditures on pensions and benefits in accordance with outlooks for the number of recipients.
The biggest corrections were added to the state budget framework for military expenses to the appropriate percentage from GDP as stated in the law, as well as domestic protection measures, reinforcement of border control infrastructure on the Latvian-Belarusian border, bonuses for various pensions and benefits, expenditures related to contributions to the EU budget, wages of politicians elected to the Saeima and other state administration, measures to the reduce the growth of energy prices next year and other positions.
Expenditures of the state special budget are estimated at EUR 4.054 billion for 2023, EUR 4.221 billion for 2024 and EUR 4.446 billion for 2025.
Compared to 2022, expenditures are up by EUR 515.8 million for 2023, EUR 453.2 million for 2024. Compared to 2024, expenditures for 2025 are up by EUR 678.4 million.
Corrections to the special budget were added due to forecasts regarding state social insurance contributions, the average wages of people employed in national economy, labour market indexes, consumer price indexes, the number of recipients of social insurance services and other factors.
Also read: September’s expected inflation in Latvia at 22.2%