RIGA, Oct. 15 (Xinhua) -- In 2019, Latvia budget revenues are expected to grow by 217 million euros from this year to 9.178 billion euros (10.64 billion U.S. dollars) while budget expenditures are projected to increase by 96 million euros to 9.205 billion euros, according to the Baltic country's draft budget for next year approved on Monday by the government.
On the same day, Latvia's draft budget 2019 was sent to the European Commission for review.
The blueprint of Latvia's budget shows that next year the government plans to spend 154 million euros on health reforms, with the national health budget expected to exceed 1 billion euros to ensure pay rises for medics and increased remuneration for their overtime work.
Like this year, Latvia intends to spend 2 percent of its GDP (gross domestic product) on defense also in 2019.
National financing for road maintenance is projected at 236 million euros, which will be added to the EU funding allocated for this purpose.
Funding will also be provided for raising teachers' wages, which the government started increasing already in September 2018, and pensions will be hiked next year as well, according to the draft document.
The budget blueprint also provides for setting aside a fiscal reserve, the size of which is planned at 0.1 percent of GDP in 2019. General government deficit has to be reduced to 0.7 percent of GDP to ensure compliance with national fiscal discipline rules. National debt is planned at 38.5 percent of GDP next year. (1 euro=1.16 U.S. dollar)
