RIGA, April 22 (LETA) - Provisional results compiled according to the European System of Accounts (ESA 2010) methodology by the Central Statistical Bureau (CSB) show that in 2023 Latvia's general government budget deficit accounted for EUR 893 million or 2.2 percent of gross domestic product (GDP) and, compared to 2022, it is EUR 886 million less, CSB said on Monday.

General government consolidated gross debt accounted for EUR 17.6 billion or 43.6 percent of GDP and during a year it has increased by EUR 1.5 billion. In 2023 rise in general government debt was affected by the issuance of three new Eurobonds.

General government expenditure in 2023, compared to 2022, rose by 5.2 percent and reached EUR 16.5 billion, of which EUR 400 million were expenditure on support measures to compensate the increase in energy resource prices, but income increased by 12.3 percent and reached EUR 15.6 billion.

As compared to operating cash flow data of the Treasury, where consolidated budget deficit in 2023 was EUR 1.4 billion, budget deficit calculated by the CSB in accordance with the methodological requirements of European System of Accounts 2010 is EUR 529.8 million or 1.3 percentage points of GDP less.

Most significant methodological adjustments with positive effect (reduces budget deficit) on the general government budget included adjustments to claims against debtors - by EUR 382.7 million or 0.9 percent of GDP, adjustments for balancing foreign financial aid flow - by EUR 298.9 million or 0.7 percent of GDP, adjustments to Recovery and Resilience Facility and Modernization Fund - by EUR 147.7 million or 0.4 percent of GDP, adjustments for paid interest - by EUR 39.7 million or 0.1 percent of GDP, adjustments for retained contribution into the Single tax account - by EUR 38.8 million or 0.1 percent of GDP, balance of the Deposit Guarantee Fund - by EUR 26.7 million or 0.1 percent 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: balance of central and local government reclassified enterprises to general government - by EUR 147.2 million or 0.4 percent of GDP, adjustments to obligations against creditors - by EUR 77.8 million or 0.2 percent of GDP, adjustments between accrued and paid interest - by EUR 64.3 million or 0.2 percent of GDP, adjustments for inclusion of Latvijas Dzelzcels (Latvian Railroads) company in general government sector - EUR 43 million or 0.1 percent of GDP, adjustments for future payments of the 2nd pillar pension scheme funds - by EUR 29.4 million or 0.1 percent of GDP, tax adjustments by using the time adjustment method - by EUR 14.1 million or 0.03 percent of GDP, adjustments for implementation of programs of the Development Finance Institution Altum - EUR 9.1 million or 0.02 percent of GDP, adjustments to revenues from auctioning of emission allowances granted to Latvia - by EUR 6.5 million or 0.02 percent of GDP.