Latvia Stability Programme Report

0.0 -1.0- - 2.0 - 3.0 - 4.0 - 5.0 - 6.0 FISCAL SUSTAINABILITY REMAINS TOP PRIORITY Prudent fiscal policy has produced low budget deficits in pre-pandemic years. The spread of Covid-19 and necessary support measures for mitigating the consequences thereof significantly impacted fiscal indicators of Latvia in the short term. Fiscal strategy of the Stability Programme 2022-2025 is set to provide fiscally sustainable deficit levels, excluding one-off measures Budget Balance (2021, % GDP) General Government Budget Balance (% of GDP) - 7.0 - 8.0 7.3 6.5 - 6.2 - 5.9 A+/A3/A-w Latvia France AA/Aa2/AA Slovakia A+/A2/A Austria AA+/Aa1/AA+ 2017 2018 2019 2020 2021 2022 2023 - 1.0 0.0 - 1.9 -1.0 -0.4 - 2.4 - 2.6 -0.8 -0.9 -0.8 -0.6 -0.7 -2.0 -3.0 -4.0 - 5.2 - 5.5 EA: (-5.1%) -5.0 -4.5 -6.0 Belgium AA/Aa3/AA- Slovenia AA-/A3/A Finland AA+/Aa1/AA+ Estonia AA-/A1/AA- Ireland AA-/A1/AA- Lithuania A+/A2/A -7.0 -2.5 -2.8 -3.7 -5.1 -6.5 -8.0 -7.1 -7.3 -9.0 -10.0 ■Latvia ■EA Source: Eurostat (02.05.2022) Results of the Spending Review (EUR, million) 200.0 172.8 150.0 70.6 100.0 50.0 102.2 0.0 2022 47.5 2023 ■Resources to common government priorities ■Internal resources for own sectoral priorities Source: Eurostat, Stability Programme for 2022-2025, AMECO Spring Forecast 2022 2022 Budget: Expenditure for priorities (EUR, million) 544,6 2022 . • 2023 301,2 309,8 2024 21 Source: Ministry of Finance, Data: Spending Review of 2022 (as of August 2021) Source: Ministry of Finance Salary increase for medical personnel, teachers, officials of the interior system Improving oncology health services (reimbursable infrastructure) Increasing funding for science medicines, Increasing the number of state-paid days of incapacity for work Financing of the municipal investment program Funding for the reconstruction of national regional roads

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