In 2024 general government budget deficit fell to 1.8 % of GDP

Provisional results¹ (accordingly European System of Accounts (ESA 2010) methodology) compiled by the Central Statistical Bureau (CSB) show that in 2024 general government budget deficit accounted for EUR 706 million or 1.8 % of the gross domestic product (GDP), compared to 2023, it is EUR 225.4 million less.

General Government Budget Deficit or Surplus and Debt

	2021	2022	2023	2024
Budget deficit (-) / Surplus (+), million EUR
General government	-2 331.0	-1 753.6	-931.6	-706.2
Central government	-2 484.4	-2 001.5	-1 078.3	-1 127.3
Local governments	-88.5	+25.0	-141.2	+68.6
Social security fund	+241.9	+222.9	+287.9	+352.5
General government budget deficit as % of GDP	7.2	4.9	2.4	1.8
Consolidated gross debt at nominal value at the end of the year, million EUR²
General government	14 809.8	16 038.9	17 578.5	18 799.7
Central government	16 017.6	17 753.6	19 403.2	19 401.8
Local governments	2 253.1	2 323.9	2 334.3	2 338.6
General government consolidated gross debt at nominal value at the end of the year as % of GDP	45.9	44.4	44.6	46.8

General government expenditure in 2024, compared to 2023, rose by 6.9 % and reached EUR 18.4 billion, but income increased by 8.6 % and reached EUR 16.3 billion.

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As compared to operating cash flow data of the Treasury, where consolidated budget deficit in 2024 was EUR 733 million, budget deficit calculated by the CSB in accordance with the methodological requirements of European System of Accounts 2010 is EUR 27 million or 0.1 percentage point of GDP less.

Most significant methodological adjustments with positive effect (reduces budget deficit) on the general government budget:

adjustments to claims against debtors (data of the Treasury) – by EUR 450.0 million or 1.1 % of GDP;
tax adjustments by using the time adjustment method (data of the Ministry of Finance) – by EUR 114.2 million or 0.3 % of GDP;
adjustments for interest receivable (data of the Treasury) – by EUR 32.6 million or 0.1 % of GDP;
balance of the Deposit Guarantee Fund (data of Latvijas Banka) – by EUR 29.9 million or 0.1 % of GDP;
adjustments for implementation of programmes of the Development Finance Institution Altum (data of the Ministry of Finance) – EUR 28.8 million or 0.1 % of GDP;
adjustments to revenues from auctioning of emission allowances granted to Latvia (data of the Treasury) – by EUR 26.3 million or 0.1 % of GDP.

At the same time, there have also been adjustments with negative effect (increases budget deficit) on the general government budget, of which the most significant are:

adjustments for balancing foreign financial aid flow (data of institutions involved in administration of foreign funds) – by EUR 228.6 million or 0.6 % of GDP;
adjustments to obligations against creditors (data of the Treasury) – by EUR 181.0 million or 0.5 % of GDP;
balance of central and local government reclassified enterprises to general government (CSB data) – by EUR 81.7 million or 0.2 % of GDP;
adjustments between accrued and paid interest (data of the Treasury) – by EUR 79.5 million or 0.2 % of GDP;
adjustments for future payments of the 2nd pillar pension scheme funds (data of the State Social Insurance Agency) – by EUR 52.8 million or 0.1 % of GDP;
adjustment of securities premium in the issue year to ensure recognition of premiums in revenue in the following years until the redemption of securities (data of the Treasury) – by EUR 30.8 million or 0.1 % of GDP.

General government consolidated gross debt accounted for EUR 18.8 billion or 46.8 % of the GDP and during a year it has increased by EUR 1.2 billion. The increase in general government debt was affected by the borrowing measures taken in 2024 to finance the general government deficit and cancel the public debt obligations.

The previously published general government budget data for previous years have been adjusted taking into account the revision of tax revenue data carried out by the State Revenue Service.

Eurostat released information on the results of the April 2025 notification in all EU Member States on 22 April.

Methodological information

While carrying out calculations of the April 2025 notification, data of the Ministry of Finance, the Treasury, State Social Insurance Agency, CSB, Riga City Council, Latvijas Banka, Central Finance and Contracting Agency and institutions involved in administration of foreign funds were used.

¹ In accordance with the requirements of Regulation (EC) No. 479/2009, the Notification on General Government Budget Deficit and Debt is submitted to the European Commission twice a year – by 1 April and 1 October. 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 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 be no more than 60.0 %.

² Consolidation was carried out in each sub-sector but not across the sub-sectors.

Media requests:
Public Relations Section
E-mail: media@csp.gov.lv
Phone: +371 27880666

More information on data:
Vija Veidemane
Government Finance Section
E-mail: Vija.Veidemane@csp.gov.lv
Phone: +371 67366963