Next year, the state consolidated budget revenue is planned to be 10.7 billion euros, while the expenditure is 12.4 billion euros. The general government budget deficit is planned at 1.62 billion euros or 4.8 percent of GDP, based on a projection of 5% GDP growth in 2022.
"The budget for 2022 is aimed at growth and strengthening Latvia, therefore the largest increases in funding are in the areas of health, education, internal and external security,” said Finance Minister Jānis Reirs.
An additional 696.8 million euros have been provided for the priorities in the state budget for 2022, compared to 2021, with the largest funding increase in the health sector which will have an extra 131 million euros.
In other key elements of the budget, there will be pay rises in the health, education, home affairs and culture sectors, and the non-taxable monthly minimum will rise from the current 300 euros (330 euros for pensioners) to 350 euros from January and to 500 euros from July 2022.
As previously reported, the minimum monthly wage will rise to 500 euros.
VAT will be reduced from 12% to 5% on books and journals. From April 2022, employers will have to fund sick pay for employees for a maximum of 9 days instead of the current 10 days before the burden falls on the state.
The budget also stipulates that 64 percent of profits from large state-owned companies will be transferred to state coffers, including not less than 70.16 million euros for Latvenergo AS, not less than 55.89 million euros for JSC Latvijas valsts meži and not less than 29.14 million euros for JSC Augstsprieguma tīkls.
Additional funding has also been allocated to the Central Election Commission for the organization of the 14th Saeima elections, as well as support for low-income residents to reduce the impact of rising energy prices.