Opinion regarding the deviation from the budget balance target to implement structural reforms in health care 6 December 2017
According to Part 7, Section 28 of the Fiscal discipline law, the Fiscal discipline council (hereafter – 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 Fiscal discipline law.
In the Surveillance report on Latvia’s Medium-term Budget Framework 2018-2020 the Council declined support for the deviation from the budget balance target to implement structural reforms in health care. The Council's position was that insufficient information had been provided about the reform and its impact on long-term growth prospects to justify the use of deficit financing.
In view of the information received from the Ministry of Health, which provides an overview of the way funds will be used and the results that have to be achieved, the Council withdraws its objection to the use of deficit financing to implement structural reforms in health care.
The Council will continue to monitor progress on structural reforms in the healthcare system.
Opinion is available here.