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

Provisional results (according to European System of Accounts (ESA 2010) methodology) compiled by the Central Statistical Bureau (CSB)¹ show that in 2024, general government budget deficit amounted to EUR 732 million or 1.8 % of gross domestic product (GDP). Compared to 2023, it is EUR 202 million less. In turn, general government consolidated gross debt accounted for EUR 18.8 billion or 46.6 % of the GDP, and during a year it has increased by EUR 1.2 billion.

General Government Budget Deficit or Surplus and Debt

General government expenditure in 2024, compared to 2023, rose by 7.1 % and reached EUR 18.4 billion, but income increased by 8.8 % and reached EUR 17.7 billion.

As compared to operating cash flow data indicated in the annual report of the Ministry of Finance, where consolidated budget deficit in 2024 was EUR 700 million, budget deficit calculated by the CSB in accordance with the methodological requirements of European System of Accounts 2010 is EUR 31.9 million or 0.1 percentage point of GDP more.

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 441.5 million or 1.1 % of GDP;
• tax adjustments by using the time adjustment method (data of the Ministry of Finance) – by EUR 107.3 million or 0.3 % of GDP;
• adjustments for interest receivable (data of the Treasury) – by EUR 32.6 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 229.4 million or 0.6 % of GDP;
• adjustments to obligations against creditors (data of the Treasury) – by EUR 176.2 million or 0.4 % of GDP;
• balance of central and local government reclassified enterprises to general government (CSB data) – by EUR 71.5 million or 0.2 % of GDP;
• adjustments between accrued and paid interest (data of the Treasury) – by EUR 81.6 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;
• adjustments for retained contribution into the Single tax account (data of the Treasury) – by EUR 25.9 million or 0.1 % of GDP.

In 2024, compared to 2023, general government debt has risen by EUR 1.2 billion and reached EUR 18.8 billion or 46.6 % of GDP. In 2024, 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 2023 have been adjusted, taking into account additional information obtained regarding measures related to the sharp increase in energy resource prices.

Eurostat will release information on the results of the October 2025 notification in all EU Member States on 21 October.

More information on General government budget deficit and debt notification is available in the Official statistics portal section Government finance.

Methodological information

While carrying out calculations of the October 2025 notification, data of the Ministry of Finance, the Treasury, State Social Insurance Agency, CSB, Riga City Council, Latvijas Banka, State Revenue Service 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
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More information on data:
Vija Veidemane
Government Finance Section
E-mail: Vija.Veidemane@csp.gov.lv
Phone: +37167366963