FDC categorically objects to the implementation of healthcare reforms by increasing the budget deficit 13 April 2016
The Fiscal discipline council (FDC) contends that increasing the budget deficit creates a risk for the sustainability of government finance, as there will be insufficient reserves for when the economy enters a downturn.
In good years, which Latvia is currently enjoying with one of the fastest growth rates in the European Union, the state should build reserves, rather than spend at the expense of future generations.
The FDC urges the Government to decrease next year’s state budget by 35 million euro (0.13% of GDP), by 116 million euro in 2018 (0.4% of GDP) and by 106 million euro in 2019 (0.3% of GDP).
Yesterday, at the meeting of the Cabinet of Ministers a decision was made to increase the budget deficit to implement reforms in the healthcare sector.
Yesterday, the FDC published its opinion on Latvia’s Stability Programme 2016-2019. The report was submitted to the Saeima, the Cabinet of Ministers and the Ministry of Finance, and was published on the websites of the FDC and the Ministry of Finance.