General government budget deficit in 2013 dropped to 1.0% of GDP

23.04.2014

General government budget deficit at the end of 2013 comprised EUR 223.8 million or 1.0% of the Gross Domestic Product (GDP), and the general government debt comprised EUR 8873.3 million or 38.1% of the GDP, according to the results of the April 2014 general government budget deficit and debt notification1 compiled by Central Statistical Bureau (CSB), which has been elaborated in line with the methodology of European System of Accounts  (ESA 95).

April 2014 general government budget deficit and debt notification: main indicators

 

2010

2011

2012

2013

 

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

  General government

-1 484.8

-716.0

-293.6

-223.8

   Central government

-971.2

-421.1

-190.3

-29.6

   Local governments

-61.5

-114.6

-61.7

-121.9

   Social security fund

-452.1

-180.3

-41.6

-72.3

 

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

8 096.4

8 526.6

9 012.6

8 873.3

Gross Domestic Product at current prices, mln EUR

18 190.2

20 311.8

22 082.7

23 315.5

 

As % over GDP

General government net borrowing (-)

-8.2

-3.5

-1.3

-1.0

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

44.5

42.0

40.8

38.1

Compared to provisional data of the Treasury, which show that in 2013 general government consolidated budget deficit comprised EUR 128.4 mln or 0.6% of the GDP, budget deficit, calculated in line with the methodological requirements of European System of Accounts ESA’95, is larger by EUR 95.4 mln or 0.4% of the GDP.

Most significant adjustments with negative effect on the general government budget (increase of deficit) are as follows:

  • government investment in financial institutions and enterprises (data of the Treasury) – adjustment by EUR 62.7 mln or 0.3% of the GDP;
  • balance of enterprises controlled and financed by central and local governments reclassified to general government (CSB data) – adjustment by EUR 46.7 mln or 0.2% of the GDP;
  • tax adjustment using time adjustment method (information source – calculation of the Ministry of Finance) – by EUR 21.4 mln or 0.1% of the GDP;
  • adjustment on income from sale of sate-owned greenhouse gas emissions (data of the Treasury) - by EUR 10.8 mln or 0.05% of the GDP.
At the same time adjustment with positive effect to the general government budget was introduced (deficit reduction): 
  • adjustments in claims against debtors (data of the Treasury) - by EUR 40.0 mln or 0.2% of the GDP;
  • adjustment on income from privatisation (data of the Ministry of Economy and the Treasury) – by EUR 9.6 mln or 0.04% of the GDP.
General government budget deficit by subsector in 2010 - 2013, as % of GDP

Data source: Central Statistical Bureau of Latvia

In the calculations of the April 2014 notification data from the Ministry of Finance, Treasury, Ministry of Economics, CSB and Riga City Council are used.

On April 23 the European Union Statistical Office Eurostat will release information on the results of the April 2014 notification in all EU member states.

 

 

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


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%.