OREANDA-NEWS. On July 10, 2008 The government endorsed amendments to the 2008 national budget, which envisage a surplus of 0,05 percent of gross domestic product, or LVL 8 million, it was learned from the Financer Ministry's Communication Department.

Overall, master budget spending is to be cut LVL 169 million.

As a result, budget revenues are projected at LVL 5,264 billion and expenditures at LVL 5,256 billion.

The amendments were drawn up by the Finance Ministry.

Finance Minister Atis Slakteris (People's Party) explained earlier that the budget surplus would be achieved by raising spending in some budget sections and in addition, reducing the spending in accordance with government institutions' proposals.

"Therefore, the budget will be balanced and budget spending will not exceed revenue, moreover, there will be a slight reserve for compensating fluctuations in the national economy," said the minister.

Slakteris pointed out that, thanks to the budget amendments, support for vulnerable social groups could be raised.

Additional LVL 88 million will be allotted for indexing pensions and paying of benefits. LVL 10 million will be provided to compensate public transport companies' costs. LVL 1.5 million will be returned to farmers as compensation for excise tax on diesel fuel.

The budget spending will be cut by staff reductions and canceling various procurement.

"For the purpose of spending reduction, state procurement plans for this year were revised. Procurement plans that are not directly connected with national economy development and creation of added value were cancelled," Slakteris said. Projects that, for various reasons, cannot be implemented this year were also crossed out.

It is planned that Saeima could consider the amendments in the first reading on July 15.