Saeima finally passes 2024 Latvian budget

After nearly three days of debate, the Saeima adopted the state budget framework for 2024, 2025 and 2026 and the state budget for 2024 in the final reading on Saturday, December 9, in an extraordinary session.

The government's narrow majority was just sufficient to see it get its spending plans across the legislative line. The budget was supported by 52 out of 100 members of parliament, while 27 voted against it. In addition 7 lawmakers from the 'Latvia First' party registered 'No vote' on the matter – under the Latvia parliamentary system there is a distinction between an active 'No vote' and an abstention by simply not voting. 

The adopted state budget assumes that Latvia's gross domestic product (GDP) in actual prices will grow by 2.5%, reaching 45.524 billion euros. Then in 2025 and 2026, growth of 2.9% per year is predicted. In the next year, average annual inflation is predicted to be 2.2% and in 2025 and 2026 – 2.5% and 2.3%, respectively.

State budget revenues next year are planned at 14.486 billion euros, and expenses at 16.2 billion euros. 

Compared to the 2023 state budget, next year's planned revenues are planned to be 1.76 billion euros higher, while expenses are 1.54 billion euros higher than in the 2023 state budget law. The budget deficit of the general government next year is planned to be 1.3 billion euros or 2.8 percent of the gross domestic product. Internal and external security, education and health are defined as the main priorities of the state. 

Speding on defense in the 2024 budget wll reach 2.4% of GDP and, gradually increasing, it is planned to reach three percent of gross domestic product in 2027. 

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