The Fiscal Discipline Council approved the Ministry of Finance's Latvian macroeconomic forecasts for 2020-2022, which are used as the basis for medium-term budget framework. Overall, the projections are realistic, but there are concerns about risks in the area of international trade and the reputation of the banking sector.
Shadows day in the Fiscal Council 13 February 2019
As always, also this year there are shadows in the Fiscal Council. Two pupils who have excellently passed the pre-selection competition - the test about the basics of fiscal discipline - were in the Council today. Madara Vineta Stivriņa from Daugavpils State Gymnasium and Elizabete Kancēviča from Riga State 3rd Gymnasium.
Fiscal council notes on maximum budget expenditure violation 12 February 2019
The Fiscal Discipline Council concluded that the decisions taken on 5 and 8 February at the Cabinet of Ministers to reallocate savings from the budget programs, that are protected by the Fiscal Disciplne Law, violates the maximum expenditure ceilings according with the budget framework law 2018-2020.
Fiscal council 7 February meeting issues 7 February 2019
Council meeting was held on 7 February 2019 in which the leading macroeconomic and fiscal policy experts of the Ministry of Finance participated. At the meeting were discussed the tax reform impact as one-off measure, as well as the most recent Latvia's macroeconomic forecasts, which will be the basis for the Latvia's Stability Programme 2019-2022.
Today, the government has started work on the state budget for 2019, examining economic development trends and the main parameters of public finances. After reviewing the report prepared by the Ministry of Finance, the Council concludes that the new government from the previous government has received the heritage with serious fiscal policy challenges. Already in the past, the Council noted a tendency for budget expenditure to grow at a much faster rate than fiscal conditions allow.