General government budget decreased in 2015

20.10.2016

In 2015, the general government budget deficit amounted to EUR 309.0 mln or 1.3 % of the gross domestic product (GDP), whereas the general government consolidated gross debt amounted to EUR 8 846.3 mln or 36.3 % of the GDP, according to the results of the October 2016 Notification on General Government Budget Deficit and Debt compiled by the Central Statistical Bureau (CSB), which has been drawn up in line with the methodology of the European System of Accounts (ESA 2010).

In 2015, the budget deficit amounted to EUR 309.0 mln, which was EUR 60.4 mln less than the year before. It decreased due to the surplus of EUR 79.9 mln in the consolidated budget of local governments in contrast to the EUR 51.0 mln deficit that was recorded in 2014.

As compared to the previous period, the central government budget deficit has increased by EUR 18.6 mln in 2015, reaching EUR 421.5 mln.

Main indicators of the October 2016 Notification on General Government Budget Deficit and Debt:

 

2012

2013

2014

2015

 

Budget deficit (-) / Surplus (+), mln EUR

  General government

-181.9

-206.6

-369.4

-309.0

   Central government

-83.1

-25.6

-402.9

-421.5

   Local governments

-52.1

-100.2

-51.0

79.9

   Social security fund

-46.7

-80.8

84.5

32.6

 

General government consolidated gross debt at nominal value at the end of year, mln EUR

9 020.0

8 892.7

9 616.3

8 846.3

Gross domestic product at current prices, mln EUR

21 848.5

22 774.0

23 607.9

24 348.5

 

As % of GDP

General government budget deficit (-)

-0.8

-0.9

-1.6

-1.3

General government consolidated gross debt at nominal value at the end of year

41.3

39.0

40.7

36.3

Compared to the cash flow data indicated in the annual report of the Ministry of Finance, where the consolidated budget deficit of 2015 was indicated as EUR 373.5 mln or 1.5 % of the GDP, the budget deficit calculated by the CSB in accordance with the methodological requirements of ESA 2010 is EUR 64.5 mln or 0.27 % lower.

Adjustments have been made in accordance with the methodological requirements of ESA 2010 by excluding financial transactions from the government sector balance, neutralising the impact of EU funds and including data on companies that have been reclassified to the general government sector. Furthermore, requirements for debtors and obligations of creditors have been adjusted, as well as other corrections have been carried out.

Data of previous years regarding the social security sub-sector published until now have been adjusted in relation to the annual lump sum payment from the 2nd pension pillar capital for recalculations of the state social security budget.

General government budget deficit by sub-sector in 2012–2015, as % of GDP

  

Data of the Ministry of Finance, the Treasury, State Social Insurance Agency, CSB, Riga City Council, State Real Estate Agency and institutions involved in the administration of foreign funds were used in the calculations of the October 2016 notification.

In accordance with the requirements of Regulation (EC) No. 479/2009, the Notification on General Government Budget Deficit and Debt is submitted to the European Commission. The results of the notification are used for assessing how the EU Member States observe the compliance of the respective economic indicators with the criteria established by the Maastricht Treaty, that is, the ratio of the general government budget deficit to the GDP at current prices must not exceed 3.0 % and the ratio of the government debt to the gross domestic product at current prices must be no more than 60.0 %.

Information on the results of the October 2016 notifications of all EU Member States will be published by Eurostat on 21 October.

More information regarding the Notification on General Government Budget Deficit and Debt is available in the CSB website section Government Finances.

 

Media requests:
Beate Danusēviča
Information and Communication Section
E-mail: media [at] csb [dot] gov [dot] lv
Phone: +371 67366924, +371 27880666
www.twitter.com/CSB_Latvia
www.facebook.com/csplatvija

 

More information on data:
Vija Veidemane
Government Finances Section
E-mail: Vija [dot] Veidemane [at] csb [dot] gov [dot] lv
Phone: +371 67366963