The Saeima yesterday endorsed in principle a bill on Latvia's 2022 budget in which consolidated revenue is planned at EUR 10.6 billion, while expenditure is projected at EUR 12.4 billion. Latvia's general government deficit is planned at EUR 1.62 billion, or 4.8 percent of GDP.
Significant funding in next year's budget is earmarked for increase of wages for medics, teachers and interior sector employees. Additional means have been earmarked for national security measures and other significant priority measures. One of the main priorities is reducing laborforce tax burden and improving competitiveness of companies. EUR 93.8 million have been earmarked to increase the maximum differentiated non-taxable minimum income and non-taxable minimum income for pensioners to EUR 350 as of January 1 and EUR 500 as of July 1. Compared to 2021 budget, the 2022 budget provides for an increase of revenue by EUR 1.078 billion and increase of expenditure by EUR 1.642 billion.