RIGA, Nov. 23 (Xinhua) -- After two days of deliberation, the Latvian parliament passed the Baltic country's 2018 budget and related bills in the final reading on Thursday, local media reported.
The package of budget-related legislation provides for gradually raising financing for road construction and maintenance, creating a social protection mechanism for people working in creative industries, as well as setting the size of child benefits depending on the number of children in the family, among other measures.
This year, lawmakers generally followed the Cabinet of Ministers' recommendations and rejected almost all proposals seeking extra allocations for various initiatives of lesser importance.
Next year, the steepest increase is planned for Latvia's health budget, which will grow by 235 million euros against this year as the health sector is bracing for reforms. Latvia's defense spending will increase by 126.8 million euro, for the first time reaching 2 percent of GDP, which is the unofficial standard expected of a NATO member state.
Latvia's budget revenues are projected at 8.75 billion euros in 2018 and expenditures at 8.95 billion euros, which should result in a budget deficit of up to 1 percent of GDP.
By the end of next year, Latvia's government debt is expected to reach 10.25 billion euros and the value of Latvia's GDP 28.36 billion euros, according to the budget bill for 2018.
The 2018 budget passed in the Latvian parliament by 59 votes to 37.
