Latvian municipalities had worst budget deficit in 2018 since crisis

Latvian municipalities have finished the year 2018 with a combined budget deficit of 150.5 million euros, which is the largest such deficit since the economic and finance crisis around ten years ago.

Latvian Ministry of Finance reported that the combined budget deficit, which last year had increased by 136 million euros as compared to the year 2017, can be attributed to a surge in capital spending, prompted by active investment of the funds of the European Union.

Meanwhile, the total budget income of municipalities in Latvia last year reached 2 646 million euros, which is an increase of 183.5 million euros or 7.4% compared to the budget income of the the year 2017.

The leaders of among the local governments that have spent more funds than they have collected are the capital Riga with a deficit of 35.2 million euros and the third-largest city Rēzekne with 11.5 million euros. The town of Salaspils, however, has been the top saver with a surplus of 2.7 million euros.

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