Latvian Minister of Finance says Russia’s war has directly affected budget formation

Russia’s war in Ukraine has caused a new crisis that has directly affected budget creation in Latvia, said Minister of Finance Arvils Ašeradens during debates in the Saeima about the state budget for 2023.
On Friday, the 17th of February, the Saeima passed in the first reading the government’s suggested State Budget Plan for 2023 and content for 2023, 2024 and 2025.
The minister mentioned during debates that the state budget for 2023 was developed under the shadow of Covid-19 and Russian-Ukrainian war. The budget also lists a great deal of support for Ukraine, refugees, as well as measures to ensure geopolitical safety and cover unprecedented price surge for energy resources.

Latvia is located some 1.5 thousand km away from the active war front.

«Every day we explore a new reality. We see it in our various media. Whenever we can, we provide aid to war refugees. I am proud that both the government and Latvia’s residents are united in their aid to Ukraine. The volume of aid provided, if we measure in GDP, is one of the biggest if not the biggest one,» said Ašeradens.
The minister reported during the meeting about the state budget’s priority tasks for the year.
On the 7th of February the government approved the state budget project. In it state consolidated budget revenue is planned at EUR 12.721 billion and expenditures are planned at EUR 14.673 billion.
Also read: Minister of Finance: existing tax level cannot cover all of the country’s needs