A meeting of the Fiscal Risks Working Group of the Fiscal Discipline Council took place on 9 May 2018. Representatives from the Cross-Sectoral Coordination Centre, from the Ministry of Economics and JSC Latvenergo, as well as from the Ministry of Finance. During the meeting the information was received about the risk management mechanisms, and the discussion continued on the quantification of these fiscal risks in the fiscal risk declaration.
The Fiscal Discipline Council's public-private partnership (PPP) project study concluded that the growing interest in PPP projects that effectively enable the development of important infrastructure and services, the government should focus more on the risk assessment of PPPs in order not to cause significant losses to the state budget in the future.
The latest data on the government deficit and government debt from the Central Statistical Bureau indicates that the budgetary outcomes are better than the planned for 2017, however the government needs to focus more quickly on a balanced budget, targeted at lowering the high government debt burden, the Fiscal Discipline Council.
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 Monday (9 April) and submitted to the Cabinet of Ministers.
Fiscal council 6 April meeting issues 6 April 2018
Council meeting was held on 6 April 2018. At the meeting were discussed fiscal rules calculations, which will be the basis for the Latvia's Stability Programme 2018-2021, as well as adopted the Council interim report (opinion).