In view of the differences in results, the Council suggests proceeding carefully when preparing the budget for 2018 28 April 2017
Today the Council published the updated tables of the numerical rules, thus concluding the verification of fiscal rules in the context of Latvia's Stability programme 2017-2020. The updated calculations also include the third numerical rule – the expenditure rule for 2018-2020, as well as the verification of budget execution results since 2013, which was performed according to the spirit of the Fiscal Discipline Law.
The main conclusions regarding the expenditure ceilings for 2018 have not been modified. In view of the fact that the Cabinet has not yet discussed the conceptual report On the reform of the health care system and the tax reform is still in development, the Council's calculations differ by the cumulative amount of both deviations from the budget deficit target (249.2 million euro).
During the process of clarifying the calculations for numerical fiscal rules, the Council agreed with the Ministry of Finance that an additional effort has to be made during the budget-preparation process and as part of the endorsement procedure of macroeconomic forecasts to ensure that the use of indicators is consistent.
The budget execution results for 2013-2015 indicate that the Government's fiscal policy was prudent. In accordance with the requirements of the Fiscal Discipline Law, the final assessment for 2016 will be carried out in December when the updated statistical data become available.
Numerical fiscal conditions updates on 28 April 2017 available here (added expenditure rule).