In just one month, the deficit of the state budget of the Republic of Latvia has sharply increased: what happened? 0 29

Budget expenditures for ten months amounted to 15.4 billion euros, the Ministry of Finance reported to bb.lv. They also provided explanations. The increase in expenditures is mainly attributed to a rapid rise in costs (by 602 million euros) for the implementation of EU fund projects and the Recovery Fund, as well as an increase in expenses for the needs of the defense ministry — by 231.1 million euros more than in the same period last year.

Military expenditures are associated with the procurement of air defense elements, as well as increased costs for the payment of soldiers and officers of the National Armed Forces (NAF), along with an increase in the number of military personnel involved in international operations.

Additionally, military vehicles were purchased for the needs of the NAF, and expenses for the construction of military facilities have risen, considering the adoption and commencement of operations at the training ground in Ķegums, as well as the increase in the number of personnel in the State Defense Service.

Funds are also needed for civilian purposes. An additional 137.7 million euros has been invested in the controversial Rail Baltica project over the past ten months. Expenditures for farmers affected by crop failures have overall increased by 48.9 million euros during the current year, with 22.9 million euros more invested in October than a year earlier.

The disconnection of the power grid from Russia has also been costly. An additional 262.6 million euros has been invested in Recovery Fund projects for synchronizing the electricity transmission system, modernizing the electrified railway network, improving energy efficiency in apartment buildings and enterprises, as well as in loans to developers for the construction of low-rent housing.