Finance Ministry comes up with draft budget figures

The Ministry of Finance is offering to finance new government programs and priorities in the amount of EUR 783.5 million in the 2024 state budget in addition to existing state programs, the Ministry of Finance said on September 26.

Additional priorities are proposed to be allocated EUR 783.5 million, consisting of:

  • EUR 114.4 million for one-off security measures and support for Ukrainian refugees;
  • 148.4 million – budgetary resources from taxes, non-tax revenues, and others;
  • 520.7 million – dividends of state-owned enterprises, revision of expenditure, and others.

The government has also agreed on three main national priorities – security, education and health, diverting funding of EUR 443.6 million to them (together with one-off investments – EUR 486.6 million). The Minister for Finance has submitted the prepared 2024 State budget offer for consideration by the government.

Of the total funding planned to be allocated in the next year's state budget, EUR 114.4 million is earmarked for one-off investments in support of Ukrainian civilians, promotion of global security, strengthening of cyber security, and development of external border infrastructure. These are measures for which the European Union (EU) allows an increase in the deficit.

For the implementation of additional measures in 2024, funds from budget revenues in the amount of EUR 148.4 million are foreseen, also increase of non-tax revenues, planned tax changes, also funds from the increase of wages in the public sector (education, health, interior salaries), correction of special budget expenditures and transfer of expenditures to the next planning period.

Resources are also provided by the updated investment plan for Rīga's public transport company Rīgas Satiksme, which affected the budget, and additional contributions to the state budget from state capital companies, as well as revision of expenses, providing the necessary funding in the amount of EUR 520.7 million.

For example, it is planned to increase dividend payments for Latvenergo and Latvia's State Forests. The Ministry's report also shows that, for example, obliging banks to pay corporation tax upfront could raise 140 million euros, raising excise tax on tobacco, tobacco substitute products, and alcohol could provide additional 20.12 million euros, as well as other changes.

The Minister for Finance has submitted the prepared 2024 State budget offer for consideration by the government.

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