Following the discussions of the government coalition on the proposals for priority measures submitted by ministries, the Ministry of Finance has prepared an information report on the proposals for the state budget priority measures for 2024 and the budget framework for 2024 to 2026.
In the 2024 it is proposed to finance new government programmes and priorities worth EUR 783 million in addition to existing priorities. Of the total financing planned to be allocated from next year’s state budget, EUR 114.4 million is intended for priorities and activities outside the fiscal space – single-time investments to support Ukrainian civilians, promotion of global security, improvement of cyber security and reinforcement of border infrastructure, the ministry reports.
The Latvian government has also agreed on three main priorities – security, education and health. The plan is to allocate a total amount of EUR 443.6 million towards these priorities. The minister has submitted the state budget project for 2024 to the government.
In 2024, finances from the fiscal space in the amount of EUR 148.4 million are to be provided for the implementation of additional measures. An increase in non-tax revenue, planned tax changes, including an increase in the remuneration of employees in the public sector (education, health, internal affairs department), a special adjustment of budget expenditures and the postponement of expenditures to the next planning period. Resources will also come from the updated the Rīgas satiksme investment plan and additional contributions to the state budget from state companies. Additional financing will also come from reviews of expenditures. All this together is expected to yield financing of EUR 520.6 million.
When preparing the budget offer,
the government allocated a significant portion of money towards the country’s domestic and external security.
In this context it is planned to increase funding towards the growth of wages of people employed in institutions under the Ministry of the Interior and Ministry of Justice, as well as financing various external security measures and reinforcement of border infrastructure. Financing is also planned to raise cyber security, the State Fire and Rescue Service’s capabilities and other activities. In 2027 it is planned to increase defence spending to 3% of the country’s GDP, as noted in the report from the Ministry of Finance.
When it comes to education, the focus is put on the implementation of the teachers’ pay increase schedule starting with the 1st of January 2024. Financing is also planned to ensure successful transition to teaching solely in state language, procurement of various education content and development of digital teaching means. Additional funding is also planned for higher education and science, reinforcement of STEM in education institutions and other activities.
EUR 275 million is planned to be allocated towards various healthcare services.
EUR 18 million is planned to go towards the enhancement of independent institutions, including public electronic mass media. More than EUR 17 million will go towards the enforcement of regulatory enactments and court judgments.
In order to implement various priorities in sectors in 2024, the government plans to allocate EUR 176 million in funding. For example, EUR 6 million is planned to go towards the priority submitted by the Ministry of Economy – the support of innovations and exports.
Most of the planned funding for agriculture will go towards
strengthening the economic viability of agriculture and addressing the effects of the crisis,
as well as investment support for strengthening the competitiveness and export capacity of fruit and vegetable farms.
The Ministry of Transport is planned to receive a significant amount of funding – EUR 40 million – to support the sector’s development. EUR 19 million will go towards maintenance of public railway infrastructure and nearly EUR 18 million will go towards grants to help cover the losses of the public transport sector.
Ministry of Welfare has submitted priorities worth a total of EUR 32.6 million. Funding is also intended to help expand the range of old-age and disability pension recipients, support measures for families and children, as well as to increase the amount of remuneration for assistants and stewards of persons with disabilities.
EUR 50 million is planned to go towards climate and energy-related activities – compensation of electricity tariff growth, for example.
The Ministry of Culture plans to raise the human resource capacity of the culture sector.
It is also planned to provide single-time targeted support to borrowers to partially compensate for the rapid increase in interest rates, allocating EUR 12 million for this.
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