Our "shadow" Edvards Kalniņš (Rīgas Franču licejs) shared his experience at the Council: ""Shadowing" the Council of Fiscal Discipline, I learned about the history and basic function of this institution, and also tried to understand the creative work approach of macro-economists, their work day and the duties to be performed. I participated also and understood the order of organization of the press conference and the necessary preparations."

Fiscal Discipline Council has approved the macroeconomic forecast for 2018 to 2021 prepared by Ministry of Finance, which will be further used by the government in consultations with the European Commission during the budget preparation for the next year. The Council sees the macroeconomic forecast as realistic, however, there are concerns regarding the potential growth of economy, which could turn out to be lower than currently forecasted by the MoF. In this case, economic growth could slow down and there will be less available financial resources to cover expenditure.

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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The Council press release is available in Latvian.

The Council press release is available in Latvian.

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 and submitted to the Cabinet of Ministers.

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).

Fiscal discipline council as one of its tasks has also stated public education and knowledge-sharing, which is an essential element of good governance. In Latvia it is now already became as a tradition the so-called "Shadows day". It is a good opportunity to address the audience of secondary school pupils, allowing them to take part in the daily work and get to know professionals who work at the Council. This year Council secretariat has also two "shadows" – Dārta Plato and Edvards Kalniņš.

 

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