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.

Our 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.

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.

As always, also this year on 13 February 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 - both were great help in our everyday duties. Big thanks go to the teachers!

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.

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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.

Fiscal discipline council is seeking to recruit fiscal risks expert. More information available here in Latvian.

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.

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