Course code Ekon3040

Credit points 3

Finances and Credit

Total Hours in Course81

Number of hours for lectures16

Number of hours for seminars and practical classes16

Independent study hours49

Date of course confirmation09.06.2020

Responsible UnitInstitute of Economics and Finance

Course developers

author lect.

Evita Apsīte

Mg. oec.

author lect.

Anita Kreicberga

Mg. sc. soc.

Course abstract

The aim of the subject is to comprehend the systems of finances, budget and taxes, the formation of them, the mechanism of regulation and the basis of legislation in Latvia. Students acquire the basic principles and supersivion of activity of bank system.

Learning outcomes and their assessment

Students will be able to
1) Demonstrate the knowledge of the financial, government budget, tax and banking systems and the associated supervisory mechanisms – test, an examination.
2) Demonstrate a comprehensive knowledge of the on theoretical and legislative aspects of finance and credit, and operational principles of the state financial system - test, an examination.
3) Identify, argue, explain and discuss current financial processes – practical assignments, independent work.
4) Evaluate analytically the ongoing financial and crediting processes in the country, to understand and discuss issues related to drafting of the state budget, tax and banking system - practical assignments.
5) Independently acquire necessary information for studying enterprise finance topics - independent work.
6) Present the results of group work and independent work - group work, independent work.
7) Independently formulate and critical analyse problems of the financial, government budget and tax - test, an examination.

Course Content(Calendar)

1. The financial system of the Republic of Latvia, its structure, role and functions. 2h (lecture – 1 hour, practical task – 1 hour)
2. Financial management. Country`s financial control. 2h (lecture – 1 hour, practical task – 1 hour).
3. The budget system of the Republic of Latvia, its functions. Budget making principles. 2h (lecture – 1 hour, practical task – 1 hour).
4. Law of the Republic of Latvia “On Budget and Financial Management”. Country`s budget compilation, approval. 6h (lecture – 3 hours, practical task – 3 hours).
5. Budget deficit, its regulation methods. 2h (lecture – 1 hour, practical task – 1 hour).
6. Country`s internal and outer debt, it`s regulation and control. 2h (lecture – 1 hour, practical task – 1 hour).
7. 1.Test: Finance and budget system. (test – 1 hour)
8. Local finances. Municipality budgets of the Republic of Latvia. Municipality financial leveling mechanism. 2h (lecture – 1 hour, practical task – 1 hour).
9. The tax system of the Republic of Latvia. Law of the Republic of Latvia "On Taxes and Duties ". 4h (lecture – 2 hours, practical task – 2 hours).
10. Tax administration. Law of the Republic of Latvia "On the State Revenue Service ". 2h (lecture – 1 hour, practical task – 1 hour).
11. The Banking System of the Republic of Latvia. Bank of Latvia. 2h (lecture – 1 hour, practical task – 1 hour)
12. Normative acts credit institution activity regulation. Credit institution development and monitoring. The Financial and Capital Market Commission. 2h (lecture – 1 hour, practical task – 1 hour).
13. Banking systems importance of stability and banking crisis. 2h (lecture – 1 hour, practical task – 1 hour).
14. The role of credit in economy. Types of credits, their characteristics. Loan issuance, client creditworthiness, its evaluation. 2h (lecture – 1 hour, practical task – 1 hour).
15. Credit resource market in Latvia and its development. 2h (lecture – 1 hour, practical task – 1 hour).
16. 2.Test. Local finances, tax and banking system. (test – 1 hour)

Requirements for awarding credit points

During the study course students have to pass 2 tests: 1) Finance and budget system, 2) Local finances, tax and banking system.
Independent work. Student has been working on a selected financial topic.

Description of the organization and tasks of students’ independent work

To master and strengthen theory questions by studying literature and legislation. Perform practical works. Developed independent work on a selected financial topic.

Criteria for Evaluating Learning Outcomes

Assessment of the course is formed:
Two Test – 40%+ 40%
Practical assignments – 10%
Independent work – 10%
10% are equal to one point on a 10-point marking scale

Compulsory reading

1. Krogzeme H. Finanses un nodokļi. Rīga: RTU Inženierekonomikas un vadības fakultāte, 2010. 568 lpp.
2. Kutuzova O. Finanses un kredīts. Rīga: Rīgas Biznesa augstskola Turība, 2012. 224 lpp.
3. Andrejeva V., Ketners K. Valsts ieņēmumu teorijas pamati. - Rīga, RTU, 2007. 351 lpp.
4. Kavale L Budžets un finanses. - Rīga, LU, 2008. 44 lpp.
5. Kavale L., Joppe A. Nodokļu politikas un administrēšanas pamati: mācību līdzeklis. Rīga: LU Akadēmiskais apgāds, 2008. 80 lpp.

Further reading

1. Kudinska M. Kreditēšana. - Rīga, Latvijas komercbanku asociācijas konsultāciju un mācību centrs, 2008. 126 lpp.
2. Gončarovs G. Finanšu teorija. Rīga: Latvijas Universitāte, 2000. 107 lpp.
3. Ketners K., Lukašina O. Nodokļi Eiropas Savienībā un Latvijā: Salīdzinošā analīze un praktiskie ieteikumi. Rīga: Merkūrijs LAT, 2008, 237 lpp.

Periodicals and other sources

1. Laikraksts Dienas Bizness: Latvijas biznesa avīze. Rīga: Dienas Mediji, 2005-. ISSN 1407-2041.
2. Bilance: grāmatvedība, likumdošana, finanses: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: Lietišķās informācijas dienests, 2005 - ISSN 1407-5709.
3. Elektroniskais žurnāls
4. LR tiesību aktu mājas lapa. Pieejams: http://
5. Finanšu ministrijas mājaslapa. Pieejams:
6. Finanšu un kapitāla tirgus komisijas mājaslapa. Pieejams: http://
7. Latvijas bankas mājas lapa. Pieejams: