Regarding the potential breach of the Fiscal Discipline Law adopting the Amendments to the Law on Micro-enterprise Tax 9 March 2015
According to the Law on Fiscal Discipline (FDL) Article 28 Part 7 the Fiscal Discipline Council (Council) shall prepare and submit to the Saeima and the Cabinet's attention of fiscal policy matters, where it finds them important to comply with the FDL terms.
1. On 17 February 2015 the Cabinet of Ministers reviewed the reply to the proposed draft law on Amendments to the Law on Micro-enterprise Tax. Discussed amendments at the Saeima Budget and finance (tax) committee would result into the deterioration of the fiscal balance of the State Budget in the amount of 7.0 million euros in 2015, 13.0 million euros in 2016 and 18.1 million euro in 2017. No compensatory measures in the State Budget to increase revenue or to reduce budget expenditure have been suggested.
To avoid a breach of the FDL, the Council recommends the following:
The Council would like to note increased activities in the government recommending new initiatives without due consideration of available funding and insufficient measures to improve the revenue potential of the State.
Fiscal discipline council opinion (No 1-02/180) sent to the Saeima Budget and finance (tax) committee and the Cabinet of Ministers. Available here.