According to Article 29 Part 2 the Fiscal Council shall prepare a non-conformity report, including recommendations for the rectification of non-conformities if the Council detects infringements of the Fiscal Discipline Law. The non-conformity report shall be prepared as soon as the non-conformity has been detected, submitted to the Cabinet and Saeima, and published on the website of the Council and of the Ministry of Finance.
On 11 December, the Fiscal Discipline Council confirmed that there is no need to correct the structural balance in the general government budget, as the accumulated deviation of the actual structural balances from the balance sheet does not violate the permissible threshold (-0.5% of GDP) set by the Fiscal Discipline Law (FDL). The total accumulated difference between the balances as of the end of 2017 amounted to 0.8% of GDP. However, the Council notes that the government must take steps to achieve the medium-term objective.
Fiscal council: fiscal consolidation next year is inevitable 14 December 2018
Fiscal discipline council submitted to the Saeima and the Cabinet of Ministers an opinion regarding amendments to the Law on the Health care financing adopted by the Saeima on 13 December, which stipulates that the financing of the healthcare sector should be increased by 20% as of 1 January 2019.
Fiscal council: there is a political revenue drawing 11 December 2018
Today the Fiscal Discipline Council held a regular meeting on issues related to the technical state budget, planned amendments to the Law on Budget and Financial Management, and also considered the assessment of budget implementation for 2017 and discussed other issues in the field of fiscal discipline.
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.