Fiscal surveillance interim report press briefing will be held on 23 April 2019, at 10:00.

Press briefing venue: Smilšu iela 1 (room 101), Rīga.

More information available here in Latvian.

For better understanding of the cyclical changes in the economy, the Fiscal discipline council, like other European independent fiscal authorities, uses a visual to characterise the economic cycle - the so-called heatmap. This tool confirms that economic growth in Latvia is fast and exceeds its potential, therefore, the state budget fiscal balance has to be planed with a surplus.

The Fiscal Council finds the government's effort on the 2019 State budget insufficient to ensure that fiscal indicators are consistent with sustainable development needs and overcome pro-cyclical fiscal stance. The Council recognizes the existing legal framework insufficient to justify the solutions included in the 2019 national budget, and suggests that the government develops and approves an additional regulations for the treatment of compulsory (non-discretionary) expenditure and revenue as well as one-off measures in the calculation of fiscal conditions.

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.

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Fiscal council meeting was held on 5 April 2019. At the meeting were discussed fiscal rules calculations, which will be the basis for the Latvia's Stability Programme 2019-2022.

According to Part 7, Section 28 of the Fiscal discipline law, the Fiscal discipline council shall prepare and submit to the Saeima and the Cabinet's attention its opinion on fiscal policy matters if the Fiscal discipline council finds them important for compliance with the terms stipulated in the Fiscal discipline law.

Fiscal discipline council member Andžs Ūbelis presents Fiscal surveillance report (in Latvian) to the Saeima Budget and finance (taxes) committee.

The Fiscal Council finds the government's effort on the 2019 State budget insufficient to ensure that fiscal indicators are consistent with sustainable development needs and overcome pro-cyclical fiscal stance. The Council recognizes the existing legal framework insufficient to justify the solutions included in the 2019 national budget, and suggests that the government develops and approves an additional regulations for the treatment of compulsory (non-discretionary) expenditure and revenue as well as one-off measures in the calculation of fiscal conditions.

Fiscal council chairman Jānis Platais sharing joined experiences with CPB Netherlands Bureau for 
Economic Policy Analysis on costing exercises at European Fiscal board seminar on independent fiscal institutions in EU. Joined presentation available here.

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