The annual opinion survey on budget discipline was carried out in April 2017, in cooperation with the social research centre SKDS. The report presents the results of the survey, which (i) provide insight into public opinion on issues related to fiscal policy and sustainability, and (ii) raise questions that have to be addressed in the fiscal sustainability report currently being prepared by the Council.
The results show that there is strong public support for countercyclical fiscal policy and a pronounced preference for sound long-term thinking. However, dissatisfaction with the quality of public services and the perceived inadequacy of health care and social protection may be a source of future pressure to increase expenditures. This may entail higher deficits and threaten fiscal sustainability. Fiscal risks expert E.Ķīlis research paper is available here.
In December 2015 the Council commenced working on the question of government debt. This year’s report by Council Macroeconomics expert E.Veide and Fiscal risks expert E.Ķīlis on public debt argues that, while the current level of public debt is still below the threshold specified in the Fiscal Discipline Law and the Maastricht Treaty, the persistence of deficit spending and a contracting labour force may create sustainability issues in the long term. Research paper is available here.
In April 2016 survey was conducted with the aim of ascertaining the views of Latvia’s population on taxes and paying taxes. A total of 1029 people were interviewed. Survey on tax morale summary. Full information on the survey available in Latvian here. Fiscal risks expert E.Ķīlis report on the tax morale survey is available here.
Another survey was carried out in April 2016 in order to ascertain the opinion of the people living in Latvia on several questions pertaining to budget discipline. A total of 1005 people were interviewed. Survey on budget discipline summary and main results for 1 June 2016 conference "Latvia's Fiscal Discipline Law: the First Three Years and Future Prospects". Full information on the survey available in Latvian here. Fiscal risks expert E.Ķīlis report on the fiscal policy and budget discipline survey is available here.
In November 2014 Fiscal risks working group in collaboration with external consultants performed a research to assess fiscal risks associated with possible state social insurance special budget expenditure for state pension and social benefit costs exceeding annual budget appropriations. Basing on research results (research performed by SIA RVJ, Mrs Elīna Veide), Fiscal discipline council evaluated the necessary Fiscal safety reserve for 2017 in the amount of 0,115% of GDP or 32,8 million euros.
In July 2015, Fiscal discipline council updated the research by adding the 2014 data.
Research "Policy changes impact assessment on social benefit special budget", incl. Annex 1 "Deviations among planned budget and executed budget of pensions and social benefits in 2003-2013" and Annex 2 "Summary on the observed policy changes with impact on execution of social insurance special budget", available in Latvian here.
Annex 3 "Report on legal acts amendments", available in Latvian here.
Summary presentation available here.
Last modified : 23 August 2017