Fiscal council: public debt continues to grow 21 April 2017
Despite the annual growth rate of Latvia’s economy reaching an average of 3.3% between 2011 and 2016, public debt has increased by 1.37 billion euro (1.09 billion was used to finance the general government deficit). This corresponds to a per capita increase of 921 euro (from 4 178 to 5 098 euro) and per employed person increase of 1331 euro (from 10 310 to 11 641 euro).
The Fiscal Discipline Council has analysed the most important plans that have been included in Latvia’s Stability Programme 2017-2020. Decisions that bear on tax policy, the reduction of unemployment and health care have been assessed. The Council has endorsed and the macroeconomic development scenario used as the basis for drafting the budget and looked into key fiscal rule issues. However, the Council is concerned that government expenditure is increasing more rapidly than the economic growth potential.
On 6 April 2017 in the 9th Annual meeting of the OECD network of Parliamentary budget officials and independent fiscal institutions Latvian Fiscal discipline council chairman Jānis Platais has provided the presentation on the Council experience.
The Fiscal Discipline Council, in cooperation with the European Commission Representation in Latvia, is organising an expert discussion on the tax policy reform proposed by the Ministry of Finance. The purpose of the discussion is to consider whether the implementation of the reforms proposed by the Ministry of Finance will ensure the achievement of tax revenue targets.
Fiscal discipline council is looking for the expert in macroeconomics. More information available in Latvian.