Notification on General Government Budget Deficit and Debt in October 2012

19.10.2012

Data of Central Statistical Bureau indicate that, according to the results of the October 2012 general government budget deficit and debt notification[1], which has been made in line with the methodology of European System of Accounts ESA’95, the general government deficit in 2011 reached LVL 488.7 million or 3.4 % of the Gross Domestic Product (GDP), and the general government debt comprised LVL 6028.3 million or 42.2 % of GDP.

October 2012 government budget deficit and debt notification: main indicators [2]

 2008200920102011
Budget deficit (-) /surplus (+), mln LVL
General government-682.4-1276.7-1040.4-488.7
     Central government-732.2-733.0-682.0-287.5
     Local governments-203.6-226.5-43.1-75.4
     Social security fund253.4-317.3-315.2-125.7
General government consolidated gross debt at nominal value at end of year, mln LVL3 182.34 802.85 694.66 028.3
Gross domestic product at current prices, mln LVL16 084.713 070.412 784.114 275.3
As % over the GDP
General government deficit (-)-4.2-9.8-8.1-3.4
General government consolidated gross debt at nominal value at end of year19.836.744.542.2

Compared to the annual report data of the Ministry of Finance, indicating LVL 454.8 million general government consolidated budget deficit in 2011 (3.2% of the GDP), the budget deficit, calculated in accordance with the methodological requirements of ESA’ 95, exceeds the amount by LVL 33.9 million or 0.2% of the GDP.

The necessity for adjustment arises from the ESA’ 95 methodological requirements and guidelines on the development of government sector financial statistics.They require that accrual (instead of cash flow) principle is followed in the calculations, and that financial transaction from government sector balance, as well as influence of European Union funds is neutralized.

General governmnent budget deficit or surplus by subsectors in 2008-2011, % of GDP 2

In the calculations of notification of October 2012 data from the Ministry of Finance, Treasury, Ministry of Economics, Central Statistical Bureau and Riga City Council are used.

Statistical Office of the European Union (Eurostat) will release information on the results of October 2012 notification in all EU Member States on October 22.

 

Prepared by the Government Finances Section
Vija Veidemane
Tel.67366963



[1] In compliance with the requirements of Regulation EC No479/2009, the 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 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%.

[2] Discrepancy in totals is due to the rounding up of the figures.