Budget surplus will be symbolic

In this year’s budget the planned surplus has been decreased from the initially planned nearly 163 mln LVL to only 8 mln LVL or 0.05% of GDP. It must be reminded that the current law in force provided to finish this year with a surplus of 1% of GDP. One of the main reasons why the budget income prognoses were decreased was nonperformance of the planned VAT prognoses. Also although the state budget expenditure will be decreased for approximately 169 mln LVL, the special budget expenditure for pension indexation and old-age pension surcharges is increased for 88 mln LVL, thereby actual state budget costs will decrease only for approximately 82 mln LVL.

Source: Db

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