Latvia Stability Programme Report

22 GOVERNMENT SUPPORT PACKAGES AND THEIR FISCAL IMPACT Total Covid-19 support measures to economy, EUR million and % of GDP 2500 2000 4.3% 1500 1000 500 0 2020 Execution 6.9% 4.1% 1.2% 2021 Execution 2022 Plan Operative performance 30.06.2022 ■Loans and guarantees; working capital loans, credit and portfolio guarantees, increasing the local governments borrowing limit, Investment fund, financial Instrument for the support of large enterprises Through taxation; Extensions of tax payment periods, cancellation of PIT advance payments, refund of overpaid VAT within 30 days, extension of real estate payment terms -500 Impact of Covid-19 support package on budget balance, EUR million and % of GDP -3.3% -1500 -2500 2020 Execution -6.4% 2021 Execution -1.8% -1.1% ■Benefits; downtime allowance, childcare allowance and supplement, subsidized jobs, including support for the tourism sector, support for families EUR 500 for each child in foster care, one-time support EUR 200 for pensioners and person with a disability ■Sectoral support; to the air transport industry, health care, for distance learning, for media and public information, for the sports, the cultural, the agricultural, forestry, fisheries and food production sectors, allowances for interior sector employee ■Restructuring of EU funds; short term loans to farmers, redistribution of EU funds, support for the fisheries sector, over - commitments of EU funds, over commitments for agricultural 2022 Assessment Operative performance 30.06.2022 funds Data. Assesment of MoF according to the government decisions till June 30th, 2022. Operative performance till June 30th, 2022. Support for compensation of increase of energy prices, mln euro Execution of support for heating season 2021/2022 (on August 16, 2022) Planned support for heating season 2022/2023 For targeted social groups; 167.8 mln For all end-users; 200.1 mln For targeted social groups; 156.82 mln For all end-users; 339.4 mln Source: Ministry of Finance, Approved measures by the Cabinet of Ministers by August 9th, 2022 Social benefits include 65.3 mln euro which at the same time are recorded as the Covid support measures as well

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