According to Article 28, Part 1 of the Fiscal Discipline Law (hereafter – FDL), the Fiscal Discipline Council (hereafter – Council) shall monitor whether the medium-term budget framework law and the annual state budget law are prepared and implemented in compliance with the fiscal rules stipulated in the FDL.
According to Article 28, Part 7 of the FDL, the Council shall prepare and submit to the Saeima and the Cabinet's attention its opinion on fiscal policy matters if the Council finds them important for compliance with the terms stipulated in the FDL.
1. On 8 July 2015 the Saeima approved the draft law "State Emergency Medical Service's Employees Involved in the Provision of Emergency Medical Services Retirement Pension Law" (hereafter – draft law) in the third reading.
2. The draft law proposed by Saeima's Commission of Social and Labour Affairs requires additional funds in the amount of 1.2 million euros in 2016. Article 4, Part 5 of the draft law stipulates that the retirement pension shall be paid from the annual state budget allocation to the Ministry of Welfare.
3. According to Article 87, Point 2 and Article 118, Part 4, Point 3 of Saeima's Rules of Procedure, if a draft law entails additional expenditure, it should be accompanied by a review from the Minister of Finance. The draft law was approved in a manner contrary to the terms stipulated in Saeima's Rules of Procedure.
To avoid a breach of Saeima's Rules of Procedure, the Council recommends the following:
1. In view of Article 71 of the Satversme, ask the President to demand a secondary review until the funds required to offset the expenses are found, or introduce compensatory measures to increase budget revenue or to reduce budget expenditure.
2. Ask the Saeima to review the draft law together with the annual state budget law and the medium-term budget framework law.
Fiscal discipline council opinion (No 1-02/491) sent to the Chancery of the President of Latvia and Saeima's Commission of Social and Labour Affairs. Available here.