According to comprehensive news from WorldWay, on June 30, 7 month 30, according to data from the Latvian Ministry of Finance, Latvia's fiscal surplus in the first half of the year reached 276 million euros, an increase of 4030 thousand euros compared to the same period last year. The increase in surplus is mainly due to the European Commission's payment to Latvia for EU-funded project funds.
Data shows that the growth in tax revenue in the first half of the year is an important factor contributing to the fiscal surplus, but its growth rate has declined due to related tax law amendments. The increase in tax revenue is mainly due to the continuous growth in domestic consumption, which is a result of rising wage levels. However, the Ministry of Finance believes that this year's tax revenue will not significantly exceed last year's level. In the first half of this year, tax revenue increased by 1.07 million euros, a year-on-year increase of 3.4%, of which value-added tax increased by 7710 thousand euros, a year-on-year increase of 9.6%, property tax increased by 1140 thousand euros, a year-on-year increase of 10.8%, and personal income tax only achieved 89.5% of the planned amount for the first half of the year, a decrease of 380 thousand euros compared to the same period last year, a year-on-year decrease of 2%.
In the first half of this year, Latvia's budget expenditure increased by 3.1% year-on-year, of which general budget expenditure increased by 5420 thousand euros, a year-on-year increase of 6.4%, subsidy expenditure increased by 2820 thousand euros, a year-on-year increase of 3.7%, and payments to the EU budget increased by 218 thousand euros, a year-on-year increase of 14.9%. Local government budget expenditures also increased significantly.
The Ministry of Finance of Latvia pointed out that the speed of budget expenditure will accelerate before the last quarter of the year (exceeding revenue, resulting in a deficit). This year, Latvia's budget deficit is set at 1% of its GDP.
Edited by WorldWay
