The information was translated using the ChatGPT service.
Collegially in the government, we have agreed that next year the state budget resources will primarily be allocated to strengthen our national security, improve the healthcare sector, develop the education sector, and support the compensation of increased electricity costs for citizens. To stimulate Latvian businesses to invest in the development of new products and thus promote the growth of the Latvian economy and increase export volumes, targeted state investments in the economy are also planned for next year, which, together with EU investments, will make a significant contribution to our economy," emphasizes Minister of Economics Viktors Valainis.
The 2024 budget of the Ministry of Economics is allocated to seven areas of activity. "The priority of the Ministry of Economics' 2024 budget expenditure is to increase the competitiveness of entrepreneurship - promoting exports, investments, and innovation. At the same time, I am pleased that within the priority measures of the 2024 state budget, additional funding of 6.4 million EUR is allocated for investment and export promotion measures, as well as support for new businesses," continues the minister.
The state budget for increasing the competitiveness of entrepreneurship is set at 77.3 million EUR. To promote business development by creating industrial zones, new jobs, and generating high added value, the state budget is intended to attract high value-added investments, promote Latvian export competitiveness, economic transformation, and support the export competitiveness of the tourism industry. To foster innovation development, the state research program "Innovation Fund - Industry Research Program" will also be continued, with 8 million EUR allocated for this purpose in 2024. "I am pleased with the support of the Saeima for our proposal to continue state support for entrepreneurs implementing large investment projects, with 70 million EUR earmarked for this purpose over the next three years," emphasizes Minister of Economics.
Additional funding of 6 million EUR is allocated in the 2024 state budget for promoting the export of services and attracting investments. "To provide support to Latvian companies, well-thought-out and sustainable state support activities are needed, which are directly related to additional support for investment, market reorientation, and the development of new and innovative products and services, promoting economic activity also in Latvian regions," emphasizes Minister of Economics Viktors Valainis. Within this funding, activities are planned to promote business and event exports in Latvia, providing support for activities such as organizing strategic and particularly large projects/events in Latvia on an international scale (seminars, conferences, and exhibitions).
Meanwhile, additional funding of 400 thousand EUR is allocated in the next year's state budget to support new businesses. "Start-ups play a crucial role in the overall innovation ecosystem, as they provide an influx of innovative business ideas and contribute to a faster shift in the economic paradigm towards the knowledge economy. Start-ups have the greatest potential to translate the discoveries and innovations of our scientists into the economy, including deep technologies. Moreover, start-ups create a new entrepreneurial culture, focusing on sustainable business models, circular and digital economy, clean energy, industrial innovation, and climate change goals. We need to be more ambitious, and we can do more to ensure the availability of financial support for the rapid growth and development of start-ups," emphasizes Minister of Economics Viktors Valainis. Support for start-ups will be provided through organizations representing the start-up ecosystem in Latvia, including the "TechChill" foundation, Riga Technical University, the "TechHub" foundation, the association "Latvian Business Angels Network," Latvian Start-up Association, Latvian Private Equity and Venture Capital Association, and the joint Implementation Partners of the 2022-2025 Start-up Development Strategy Memorandum - TechChill, Riga Technical University, TechHub Foundation, Latvian Business Angels Network Association, Latvian Start-up Association, Latvian Private and Venture Capital Association. Activities planned include international events (conferences, seminars), individual consultations for early-stage start-ups on available investments, and investor attraction sessions, among others. The implementation of these activities is crucial for the regional and international development of Latvia.
Significant funding is also earmarked for enhancing economic resilience and increasing energy independence, improving construction quality, safety, and responsibility, promoting housing accessibility, and other activities.
For promoting economic sustainability and attracting investments for energy independence, 35.9 million EUR is allocated. In 2024, the state budget expenditure is allocated for supporting protected electricity consumers and implementing the ELWIND joint offshore wind energy project.
The state budget for construction and housing policy implementation is set at 16.9 million EUR. To provide a favorable environment for investments in Latvia, promoting the construction and renovation of homes, and improving housing accessibility, state budget resources are allocated for improving the quality, safety, and responsibility of the construction process, increasing digitization in the construction process, and reducing administrative burden. Additionally, funding is allocated for housing accessibility support – the state budget provides 9.1 million EUR for the continuation of Altum's housing guarantee programs and the "Balsts" support program in 2024.
For internal market supervision, 5.7 million EUR is allocated. To ensure that Latvia's market surveillance system complies with the requirements of the European single market and to ensure that only safe goods and services, including in the digital environment, are available in Latvia, the 2024 state budget provides financial resources for market surveillance measures, conformity assessment, and quality assurance. Additional funding of 1.2 million EUR is allocated for the effective protection of consumer rights, especially in the digital environment, where consumer safety, satisfaction, and trust in the market will be promoted, sustainable consumption will be developed, the defense of collective consumer requirements will be introduced, and market surveillance processes will be optimized and developed.
For official statistics provision, 14.04 million EUR is allocated in the 2024 state budget. To modernize the provision of official statistics and increase the quality compliance of statistics, additional funding is allocated in 2024 for the implementation of e-solutions in statistical data collection, reducing administrative burden, increasing data availability, and creating lifelong learning and graduate monitoring.
For ensuring the management and policy planning process of the Ministry of Economics' sectors, 10.49 million EUR is allocated, where funding is intended not only for developing policies that promote Latvia's economic development but also for implementing measures for innovation development and digitalization, export promotion, creating a competitive and favorable business environment, and introducing a unified model of human capital and employment management in Latvia.
For implementing competition policy, 4.9 million EUR is allocated in the 2024 state budget, which will be used to prevent the most significant violations of competition law and promote fair competition.