On 11 October 2018, the Latvian Fiscal discipline council endorses the macroeconomic forecasts developed by the Ministry of Finance, that the government will use to develop the Latvian medium-term budgetary framework 2019-2021. At the same time, the Council insists on the very strict respect for fiscal discipline, so that, at a time when rapid economic growth is taking place, the fiscal space will not be expanded.

The Fiscal discipline council, for the first time in Latvia, has conducted a survey of Latvia's largest parties on the fiscal impact of their pre-election promises before the forthcoming Saeima elections. The Council has founded that political parties express a responsible attitude towards the public finances. Report available also in English.

Evaluating the proposed Latvia's Stability Program for 2018-2021, Fiscal Council has concluded that the Government continues to implement responsible fiscal policy and in general respects the requirements of fiscal discipline. Meanwhile, the Council highlights a significant expansion of the fiscal policy plans compared to 2015 and 2016, which is not in line with the current favourable economic conditions and facilitates pro-cyclical directions (additionally warming economy and not reducing state debt). This has been recognised by the Fiscal Council in their annual interim report, which was published on 9 April and submitted to the Cabinet of Ministers.

Fiscal sustainability refers to the ability of a government to maintain its current revenue and expenditure policies, without failing to meet its commitments and obligations, or leading to an unmanageable growth of public debt. Analysis conducted this year indicates that both the provision of public services and public debt service will create challenges.


The Council press release is available in Latvian.

On 11 October 2018 Saeima approves Mrs Inna Šteinbuka as the Fiscal council member. More information available in Latvian here.

Council meeting was held on 20 September 2018 in which the experts of the Ministry of Finance participated.

On 7 September 2018 this year's third GDP working group meeting was held with participation of the Bank of Latvia experts. Working group discussed the trends in the macroeconomic development of Latvia, incl. labor market issues, as well as potential GDP and output gap issues. 

The Fiscal Council disagrees with the redistribution of funds in the law-protected budget program. More information available in Latvian.

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