Portrait of an Ascending Sovereign Credit
Fiscal Sustainability Remains Top Priority
Prudent fiscal policy has produced low budget deficits well below the EU-27 average over the past 8 years. The spread of Covid-19 and
support measures for mitigating the consequences thereof are expected to significantly impact fiscal indicators of Latvia in short term.
General Government Budget Balance
Budget Balance (2020, % GDP)
(% of GDP)
2015
2016
2017
2018
2019
2020
2021
2022
2023
1.0
0.2
0.0
-1.0
-0.4 -0.6
-0.8 -0.8 -0.8
-2.0 -1.4
-0.5
-1.4
-3.0
-1.9
-4.0
-5.0
-4.5
-2,1
-2.3
-3.6
-4.8
-6.0
-7.0
-6.6
-6.9
-8.0
-9.0
-10.0
■Latvia ■ EU-27
-9.3
Source: Eurostat, Draft Budgetary Plan of the Republic of Latvia 2022, AMECO Autumn Forecast 2021
Spending Review Results
(EUR, million)
200.0
172.8
150.0
70.6
100.0
50.0
102.2
47.5
0.0
2022
2023
Resources to common government priorities
■Internal resources for own sectoral priorities
20 Source: Ministry of Finance
EU-27: (-6,9%)
- 4.5
France
Belgium
Austria
Czechia
Finland
Estonia
AA/Aa2/AA AA/Aa3/AA AA+/Aa1/AA+ AA-/Aa3/AA- AA+/Aa1/AA+ AA-/A1/AA-
Source: Eurostat
Latvia
A+/A3/A-
2022 Budget: Expenditure for priorities (EUR, million)
696,8 2022
• Labor tax rate reduction
•
Salary increase for medical personnel,
teachers, officials
the interior
of
system
·
Improving oncology health services
2023
457,2
(reimbursable
medicines,
infrastructure)
463,9 2024
Source: Ministry of Finance
•
Increasing funding for science
Increasing the number of state-paid
days of incapacity for work
• Reduced value-added tax for books
and printed pressView entire presentation