Official expects Latvia's budget revenues to exceed 2016 target

With tax collection going better than planned so far, Latvia's budget revenues are set to rise above the target this year, Latvian Finance Minister Dana Reizniece-Ozola told public radio on Thursday.

"Tax revenues are definitely going to be higher than planned. But it is also necessary to keep in mind that economic growth is being impeded both by external and domestic factors," the minister said, stressing the importance of timely adaptation to changeable conditions.

"The government has promised to entrepreneurs that the key taxes will not be changed, and this promise will be honored. Looking for new sources of revenues, the ministries revised their expenses already at the beginning of the year, proposing various measures aimed at reducing shadow economy, as well as some smaller tax adjustments," Reizniece-Ozola said.

These days, the government is starting work on Latvia's 2016 budget. The plan is to raise revenues primarily by clamping down on shadow economy, but the government also wants to abolish some tax rebates. Health, security and education have been defined as priorities for 2017.

Latvia's tax revenue target for the first seven months of this year has been beaten by 0.1 percent, or 6.48 million euros as the State Revenue Service collected 4.584 billion in taxes.

Latvia's total budget revenues in the seven months of this year reached 2.262 billion euro, exceeding the target by 0.5 percent, or 11.134 million. (1 euro = 1.10 U.S. dollars) Endit