Portrait of an Ascending Sovereign Credit
Fiscal Sustainability Remains Top Priority
Prudent fiscal management has produced small budget deficits well below the EU-28 average over the past 8 years. The
spread of Covid-19 and the restrictions for mitigating the consequences thereof are expected to significantly impact the
economy and fiscal indicators of Latvia.
General Government Budget Balance
(% of GDP)
Budget Balance
(2019, % GDP)
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
1.0
0.2
0.0
-1.0
-0.2
-0.8
-2.0
-1.2
-1.1
-0.8-0.7
-0.81
-1.4
-1.6
-1.4
-1.7
-3.0
-2.4
-2.9
-4.0
-3.3
-5.0
-4.3
-6.0
-7.0
■Latvia
EU-28
-8.0
-9.0
22
- 1.9
EU-28: (-0.8%)
-3.9-3.6
France
Belgium
AA/Aa2/AA AA/Aa3/AA
Finland
Estonia
Latvia
Czech
Austria
AA+/Aa1/AA+ AA-/A1/AA- A+/A3/A- AA-/Aa3/AA- AA+/Aa1/AA+
-7,6
-8.3
Source: Eurostat
Source: Eurostat, AMECO Spring forecast 2020, Informative report «On the forecasts of macroeconomic
indicators, revenues and general government budget balances in 2021-2023», approved on 18th August 2020
Spending Review Results (EUR, Million)
2020 Budget: Expenditure for priorities (EUR million)
335,5
2020
Salary increase for the medical personnel,
teachers, officials of the justice system
• Minimum remuneration rate increase for the
academic staff
• Enforcement of the Constitutional
2021
341,6
•
judgments in the field of welfare
Court
• Implementation of the housing guarantee support
program
60.0
53,6
50.0
13.1
38,4
40.0
11.4
30.0
20.0
40.5
27.0
10.0
0.0
.
339,9
2022
2021
2022
Source: Ministry of Finance
Resources to common government priorities
Internal resources for own sectoral priorities
Source: Ministry of Finance
·
Compensatation for the loss of delivery of the
subscribed press publications
Support for the Latvian School Youth Song and
Dance Celebration
• Withdrawal of the social media from the
advertising marketView entire presentation