General Government Budget Deficit in 2012 has dropped to 1.3 % of GDP

21.10.2013

General government budget deficit at the end of 2012 comprised LVL 203.3 (EUR 289.3) million or 1.3 % of the Gross Domestic Product (GDP), and the general government debt comprised LVL 6,305.8 (EUR 8,972.4) million or 40.6 % of GDP, according to the results of the October 2013 general government budget deficit and debt notification [1] compiled by Central Statistical Bureau (CSB), which has been made in line with the methodology of European System of Accounts ESA’95.

October 2013 general government budget deficit and debt notification: main indicators

 2009201020112012

Budget deficit (-)

General government

mln LVL

-1 276.9-1 040.7-508.6-203.3

mln EUR

-1 816.8-1 480.8-723.6-289.3

Central government

mln LVL

-733.1-682.4-302.9-132.4

mln EUR

-1043.2-971.0-430.9-188.3
Local governments

mln LVL

-226.5-43.1-80.0-42.3

mln EUR

-322.2-61.4-113.8-60.2
Social security fund

mln LVL

-317.3-315.2-125.7-28.6

mln EUR

-451.4-448.5-178.9-40.8
General government consolidated gross debt at nominal value at end of year

mln LVL

4 826.15 682.15 974.46 305.8

mln EUR

6 866.98 084.98 500.88 972.4
Gross domestic product at current prices

mln LVL

13 070.412 784.114 275.215 519.8

mln EUR

18 597.618 190.220 311.822 082.6
As % over GDP
General government net borrowing (-)-9.8-8.1-3.6-1.3
General government consolidated gross debt at nominal value at end of year36.944.441.940.6

In the calculation of notification data compiled by the Ministry of Finance, according to the national legislation on the budget and finance management, are used, which show that in 2012 general government sector budget surplus was LVL 27.0 (EUR 38.4) million or 0.2% of GDP.

But, adjustments made accordingly methodology requirements of European System of Accounts ESA’95, which require following accumulation, not money flow, principle in the calculations of government statistics area, to exclude financial transactions from government sector balance, show budget deficit instead of budget surplus.

Main negative adjustments are related to government investment in financial institutions and enterprises, inclusion of balance of enterprises controlled and financed by central and local governments reclassified to general government in data, as well as neutralization of impact of the EU funds.


[1] In compliance with the requirements of Regulation EC No. 479/2009, the general government deficit and debt notification is submitted to the European Commission twice a year, by April 1 and October 1. 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 planned and actual general government budget deficit to the gross domestic product (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 not be higher than 60.0%.

More detailed information is available in the CSB database.

More information:
Government Finances Section
Vija Veidemane
Phone: +371 67366963