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Latvian budget deficit in first five months at LVL 395.21 million

The state consolidated budget deficit in the first five months of this year totaled LVL 395.21 million, according to the State Treasury's latest data, LETA reports.

The master budget revenue in May amounted to LVL 230.97 million, whereas tax expenditure reached LVL 240.36 million, thus the financial debt totaled LVL 9.39 million.

The state master budget tax revenue in May stood at LVL 157 million, which is LVL 36 million or 23 percent more than in April. An increase was registered both from corporate tax revenues (LVL 18 million more than a month earlier) and from excise and value-added tax revenues, which were collected by LVL 12 million and LVL eight million more than in the previous month respectively.

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On the other hand, revenue from the personal income tax and other taxes was lower than in April.

In May 2009, LVL 13 million were injected in Latvia's economy in form of foreign financial assistance, as Latvia received LVL 4.8 million Cohesion Fund installment, LVL 4.3 million from the European Agricultural Guarantee Fund and LVL 4.4 million other installments.

The national master budget revenue in January-May totaled LVL 1.168 billion, the budget spending amounted to LVL 1.491 billion, thus there is currently LVL 323.20 million financial deficit. Additionally, as the special budget revenue stood at LVL 535.45 million and the spending amounted to LVL 607.46 million, there is LVL 72 million financial deficit in the special budget.

Thus, the state consolidated budget deficit in the first five months of 2009 reached LVL 395.21 million.

In the first five months of this year, revenue from all the taxes is lower than in the first five months of the last year.

Revenue from the personal income tax has shrank by LVL 26 million, revenue from the corporate income tax reduced by LVL 106 million, the value-added tax revenue plunged LVL 137 million, the excise tax revenue was LVL 10 million lower and that of customs duty - LVL 4 million lower.

The official state budget performance report will be presented on June 18.

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